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Digitized  by  the  Internet  Archive 

in  2008  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/crittendoncommerOOgroerich 


THE 


CRITTENDEN 

COMMERCIAL  ARITHMETIC 

AND 


DESIGNED  FOR  THE  USE  OF 


MERCHANTS,  BUSINESS  MEN, 

/Academies,  and    Commercial    Colleges. 


BY 

JOHN    GROESBECK, 

CONSULTING    ACCOUNTANT, 
PRINCIPAL  OF  CRITTENDEN'S  PHILADELPHIA  COMMERCIAL  COLLEGE. 


PHILADELPHIA: 
ELDREDGE  &  BROTHER, 

No.  17  North  Seventh  Street. 
1875. 


"Knowledge  is  the  guide  of  practice." 

"If  a  man's  wits  be  wandering,  let  him  study  arithmetic." — Bacon. 

"Washington  studied  the  intricate  forms  of  business.  He  copied 
out  bills  of  exchange,  notes  of  hand,  bills  of  sale,  receipts,  and  all 
the  varieties  of  the  class,  with  a  precision  and  elegance  that  were 
remarkable." 


WOCMXIOM  UBi 


-xJ&&e »<W 


Entered  according  to  Act  of  Congress,  in  the  year  1868,  by  "^  j> 

JOHN   GROESBECK,  1 

in  the  Clerk's  Office  of  the  District  Court  of  the  United  States  for  the        J 

Eastern  District  of  Pennsylvania.  >>J^ 


j£ku$i 


<X\ 


OAXTON  PRESS  OK  81IERMAK  *  00. 

Add  to  Lib. 
GIFT 


ISIS 

Educ. 
Lik 


PREFACE 

TO    THE    FOURTH    EDITION. 


The  abject  of  this  book  is  to  impart  that  practical 
knowledge  which  is  daily  required  in  business  life. 

Business  is  based  upon  comprehensible  principles  and 
facts,  a  knowledge  of  which  will  promote  efficiency  in 
actual  transactions.  Practice  only  can  impart  skill  in 
application;  but  practice  enlightened  by  knowledge 
sooner  acquires  proficiency,  and  is  saved  from  many 
errors  and  much  useless  labor. 

Among  the  qualifications  necessary  in  mercantile 
pursuits,  none  are  more  essential  than  a  thorough  ac- 
quaintance with  the  methods  of  calculation  employed, 
and  a  familiarity  with  the  various  forms  of  business 
papers. 

The  limits  of  the  text-books  on  Arithmetic  in  com- 
mon use  prevent  that  extended  explanation  of  com- 
mercial customs  and  regulations,  and  the  presentation 
of  the  requisite  details,  necessary  for  a  clear  understand- 
ing of  the  manner  in  which  the  calculations  are  to  be 
applied;    and,   while  the   principles   of   numbers  are 

924 


4  PREFACE. 

fully  elucidated,  the  short,  practical,  and  labor- saving 
methods  actually  used  by  business  men  are  omitted. 
The  pupil  frequently  finds,  when  he  enters  into  active 
life,  that  he  is  poorly  prepared,  and  that  he  must  learn 
more  expeditious  and  varied  methods  of  calculation 
than  those  he  has  been  taught  at  school. 

Success  and  advancement  in  any  pursuit  depend  in 
a  great  measure  upon  the  qualifications  possessed  when 
entering  upon  it,  as  the  exactions  of  active  life  leave 
little  opportunity  to  remedy  deficiencies  of  preparation. 
He  who  would  succeed  must  not  wait  until  surrounded 
by  the  bustle,  demands,  and  complications  of  actual  busi- 
ness, any  more  than  the  captain  should  defer  obtaining 
a  knowledge  of  navigation  until  his  vessel  is  at  sea,  or 
the  physician  put  oif  the  study  of  medicine  until  called 
upon  to  prescribe.  He  should  go  prepared  into  the 
busy  walks  of  life,  ready  to  surmount  every  difficulty 
and  to  excel  in  every  thing  he  undertakes. 

The  calculations  presented  in  the  following  pages 
have  been  selected  as  the  best  and  most  important  in 
actual  use  in  business  circles,  and  which  are  daily  be- 
coming more  and  more  necessary  to  be  well  understood 
by  those  who  #ish  to  make  an  efficient  preparation  for 
the  employments  of  the  counting-house.  Several  of 
them,  it  is  believed,  are  now  published  for  the  first 
time.  Not  only  the  principles,  but  the  mechanical 
processes,  should  be  completely  mastered,  in  order  to 
acquire  that  readiness,  rapidity,  and  accuracy  of  appli- 


PREFACE.  5 

cation  which  are  essential  to  secure  an  eminent  posi- 
tion as  an  accountant,  or  to  become  a  competent 
business  man. 

The  forms  of  papers  are  those  with  which  every  per- 
son should  be  familiar,  and  include  a  greater  variety 
than  has  yet  appeared  in  any  one  collection.  They 
are  accompanied  by  explanations  of  their  nature  and 
use,  and  the  obligations  and  relations  of  the  parties  to 
them,  and  will  impart  such  accurate  ideas  of  business 
practices  as  will  be  of  great  service  to  those  of  limited 
experience. 

Many  subjects  have  been  introduced  which,  though 
rarely  taught  in  schools,  are  of  great  importance  in  the 
counting-room  and  in  actual  life.  The  student  of  book- 
keeping especially  will  find  much  to  aid  him  in  his 
attempts  to  acquire  a  knowledge  of  that  science. 

The  author  has  been  connected  for  the  last  eleven 
years  with  Crittenden's  Philadelphia  Commercial  Col- 
lege, for  which  this  manual  was  primarily  prepared, 
and,  in  addition  to  his  knowledge  of  the  wants  of  the 
student,  has  been  frequently  consulted  by  merchants 
and  others  upon  difficult  questions  that  have  occurred 
in  their  practice.  These  difficulties  have  been  care- 
fully noted,  and  many  of  their  intricacies  are  here 
solved  and  explained. 

He  takes  this  opportunity  to  acknowledge  his  in- 
debtedness to  numerous  friends  for  their  valuable  assist- 
ance in  tho  preparation  of  the  work,  and  to  render 

1* 


6  PREFACE. 

them  hia  sincere  thanks.  He  would  also  express  his 
obligations  to  the  officers  of  numerous  banks  and  mer- 
cantile houses,  of  the  Mint,  the  Custom-House,  and  of 
various  public  and  private  establishments,  for  the 
opportunities  afforded  him  of  obtaining  reliable  in- 
formation on  many  subjects  of  interest  and  value. 

Three  large  editions  of  the  work  having  been  ex- 
hausted within  a  few  months,  it  has  been  carefully 
revised  and  considerably  enlarged,  and  no  effort  has 
been  spared  to  render  it  worthy  of  its  very  favorable 
reception.  To  those  who  have  kindly  favored  him 
with  their  communications, — as  invited  in  the  first 
edition, — the  author  tenders  his  thanks,  and  would 
here  repeat  that  he  will  deem  it  a  special  favor  if 
business  men,  teachers,  and  others,  will  communicate 
any  suggestion,  new  or  improved  method  of  calcula- 
tion, or  useful  information  on  business  topics,  that  may 
add  to  its  accuracy  and  completeness. 


*+*  A  Key  to  the  Crittenden  Commercial  Arithmetic,  for 
the  use  of  Teachers  only,  has  been  prepared,  and  will  be  sent 
by  mail,  postpaid,  on  receipt  of  $1.00. 


CONTENTS. 


COMMERCIAL  ARITHMETIC. 

Pagi 

Characters  and  Abbreviations 12 

Methods  op  Addition 13 

Balancing  Accounts 19 

Cancellation ...  20 

Fractions:  Rules  frequently  used 21 

Denominate  Numbers 25 

Practice 30 

Contractions  in  Multiplication 31 

Contractions  in  Division 40 

Calculations  used  in  Particular  Branches  of  Business...  43 

Proportion 45 

Simple  Proportion 46 

Compound  Proportion 47 

Distributive  Proportion.. M 48 

Compound  Distributive  Proportion 50 

Medial  Proportion 51 

Percentage 56 

Commission,  Brokerage,  &c 59 

Storage 64 

Insurance 65 

Marine  or  General  Average 70 

Taxes 73 

Interest 76 

Computing  Time 77 

Accurate  Interest 81 

Interest  on  Government  Bonds 81 

Interest  in  England 82 

Problems  in  Interest 83 

True  Discount 84 

Banking 85 

Merchants'  and  Bankers'  Interest  Accounts 89 

Partial  Payments , 95 

7 


8  CONTENTS. 

Pagb 

Average  of  Payments:  Abbreviated  Methods 99 

Average  of  Accounts:  "  "        108 

Time  Table 114 

Money,  Weights,  and  Measures 115 

Relative  Value  of  Gold  and  Silver 117 

United  States  Gold  and  Silver  Coin 119 

Foreign  Gold  Coins 121 

Foreign  Silver  Coins 122 

Weights  and  Measures 123 

Money,  Weights,  and  Measures  of  United  States 125 

Money  of  Great  Britain 130 

Weights  and  Measures  of  Great  Britain 131 

French  Metric  System 132 

Foreign  Moneys  of  Account 135 

Foreign  Weights  and  Measures 136 

Comparative  Tables  of  Weights  and  Measures 136 

Exchange 138 

Domestic  Exchange 139 

Foreign  Exchange 140 

Explanation  of  Exchange  Quotations . 140 

Exchange  on  England 141 

Shipments  of  Specie 142 

Bankers'  Rules  for  computing  Sterling  Exchange 143 

Sterling  Table,  at  Premium 145 

Sterling  Table,  at  Par 146 

London  Course  of  Exchange 147 

Exchange  on  France 148 

Ccstom-House  Business 149 

Profit  and  Loss 154 

Total  Gains  and  Losses 154 

Gains  and  Losses  on  particular  Goods 155 

Premium  and  Discount 158 

Gold  and  Currency  Table 159 

Discounting  Bills  and  Invoices 160 

Price  Lists 163 

Advanced  Cost  of  Invoices 164 

Importers'  Advance  Table 165 

Quick  Sales  and  Small  Profits.... 171 

Marking  Goods 172 

Annual  Product  of  Gold  and  Silvek 173 


CONTENTS.  9 

Paoi 

Partnership  Settlements 174 

To  find  each  Partner's  Share  of  the  Gains  and  Losses 176 

To  find  each  Partner's  Share  at  closing 177 

Detecting  Errors  in  Trial  Balances 184 

Finding  the  True  Weight  with  Fraudulent  Balances 185 

Dividends  and  Investments 186 

United  States  National  Debt 188 

Description  of  United  States  Bonds 189 

United  States  Treasury  Regulations 192 

National  Debts.... 193 

The  Stock  Exchange 194 

Stock  Quotations 196 

Stock  Interest  Table 202 

United  States  Bonds  in  Europe 203 

London  Quotations 204 

Paris  and  Frankfort  Quotations 205 

Compound  Interest 206 

Compound  Interest  Tables '. 207 

Annuities 211 

Tables  of  Annuities 214 

Building  Associations , 217 

Life  Insurance 22C 

Carlisle  Table  of  Expectation  of  Life 221 

Life  Interest  Table 223 

The  Cental  System 224 

Square  Root 225 

Lumber  Measure 226 

Gauging 227 

Testing  the  Accuracy  of  Measures 228 

Grain  Measure 228 

Calculations  in  Natural  Science 229 

Mechanical  Powers 229 

Falling  Bodies 232 

Specific  Gravity 233 

Light  and  Heat 237 

Strength  of  Materials 240 

Properties  of  Numbers * 242 

Miscellaneous  Rules , 242 

Rules  of  Mensuration 213 


10  CONTENTS. 


BUSINESS   FORMS   AND   INFORMATION. 

Pagi 

Business  Maxims 246 

Payments  and  Legal  Tender 247 

Receipts 250 

Book  Accounts 257 

Bills,  Invoices,  and  Statements 258 

Bills  of  Lading 264 

Account  Sales 267 

Accounts  Current 269 

Orders 271 

Checks 272 

Checks  payable  in  the  future 274 

Certified  Checks 274 

Certificates  of  Deposit 275 

Transactions  with  Banks 275 

Rules  for  detecting  Counterfeit  Bank  Notes 277 

Description  of  National  Bank  Notes 278 

Description  of  Treasury  Notes,  or  Greenbacks 279 

Due-Bills.... 280 

Produce  Notes 281 

Promissory  Notes 281 

Negotiable  and  Non-Negotiable 282 

Presentment  and  Protest 285 

Accommodation  Notes 286 

Collateral  Notes '. 286 

Joint  and  Several  Notes 287 

Judgment  Notes 287 

Form  of  Protest  and  Notice 292 

Drafts  and  Bills  of  Exchange 293 

Indorsements 298 

Acceptances 301 

Agency 302 

Powers  of  Attorney 304 

Sealed  Instruments 307 

Bonds 308 

Common  Form  of  Bond 309 

Clauses  for  Bonds 309 

Release 310 


CONTENTS.  11 

Paos 

Contracts 312 

General  Form  of  Agreement 314 

Agreement  of  Sale 314 

Bill  of  Sale,  and  Affidavit  for  Goods  sold , 315 

Guarantees 316 

Partnership 318 

Partnership  Agreements 320 

Partnership  Notices 324 

Landlord  and  Tenant 326 

Forms  of  Lease ...  327 

Security  for  Rent 328 

Mercantile  Correspondence 329 

Mercantile  Letters , 334 

Offering  Goods 334 

Declining  Offer  to  purchase 334 

Declining  to  purchase 335 

Order  for  Goods 335 

Enclosing  Invoice  and  Bill  of  Lading 335,  336 

Advice  concerning  Shipment 336,  338 

Acknowledging  Receipt  of  Invoice 337 

Consigning  Goods  to  be  sold  on  Commission 337,  338 

Enclosing  Account  of  Sales 337 

Enclosing  Note  for  Discount  at  Bank 338 

Enclosing  Account  Current 339 

Enclosing  Remittance 339 

Acknowledging  Remittance 340 

Asking  for  Settlement 340,  341 

Enclosing  Draft  for  Acceptance,  and  Answer 341 

Enclosing  Statement  of  Account 342 

Advising  of  Draft 342 

Enclosing  Notes  for  Collection 342 

Letter  of  Introduction,  and  Recommendation 343 

Answer  to  Advertisement 343 

Application  for  Situation 344 

Order  for  Book 344 

Instalment  Receipt 345 

English  Exchequer  Bill 345 

Certificate  of  Stock 346 

Certificate  of  Scrip  Dividend 347 

United  States  Five-Twenty  Bond 348 


CHARACTERS  AND  ABBREVIATIONS 

USED    IN    BUSINESS. 


($     At. 
%     Account. 
p       Cents. 
fc     Per  cent. 
#     Number. 
I1     One  and  one-quarter. 
I3     One  and  one-half. 
I8     One  and  three-quarters. 
15  doz.  $yj,  #tV  $t58 •   Fifteen  doz., 
5  of  which  are  $12  per  doz.,  5 
doz.  @  $15,  and  5  doz.  at  $18 
per  doz. 

1100  pounds  gross 
weight,  155  lbs. 
tare,  or  weight  of 
hhd.,  945  lbs.  net 
weight. 

The  numbers 


1  hhd.  Sugar. 
1100 
155  9451bs 


42] 


4  ps.  28  \  138  yds. 


in  the  bracket 


36 

28  r«"*  j*—  are  the   num- 

32  J  ber  of  yds.  in 

each  piece  respectively. 

10  doz.  %  @  2/-f  @  3/6.     4  doz. 

No.  5  @,  2  shillings  per  doz. ; 

6  doz.  No.  8  @  3s.  6c?.  per  doz. 

7  X  9,  or  7  by  9  in.      7  in.  wide, 

9  in.  long. 
<^>  W.W.,  and  similar  characters 
and  letters,  are  placed  on  pack- 
ages to  designate  a  particular 
lot  or  shipment. 

(Goods  are  numbered  and  marked,  that 
tLey  may  be  distinguished  without  mi- 
nute description.) 


Acc't. 

Account. 

Adv. 

Adventure. 

Am't. 

Amount. 

Ass'd. 

Assorted. 

Bal. 

Balance. 

Bbl. 

Barrel. 

Blk. 

Black. 

Bo't. 

Bought. 

B.  L.,  orB  ofL. 

Bill  of  Lading 

Co. 

Company. 

Cr. 

Creditor. 

Com. 

Commission. 

Cons't. 

Dft. 

Disc't. 

Do.  or  ditto. 

Doz. 

Dr. 

Ea. 

E.E. 

E.  &O.E. 

Exch. 

Exps. 

Fig'd. 

Fol. 

Forw'd,  orfwd. 

fr. 

Fr. 

Fr't. 

Guar. 

Gal. 

Hhds. 

Ins. 

Insol. 

Inst. 

Invt. 

Int. 

Mdse. 

Mo. 

Net. 

No. 

Pay't. 

Pd. 

Pk'gs. 

Per,  or  pr. 

Per  cent. 

Prem. 

Prox.  (proximo) 

Ps. 

Rec'd. 

Ship't. 

S.S. 

Sunds. 

Ult.  (ultimo) 

Yds. 

Yr. 


instant) 


Consignment. 

Draft. 

Discount. 

The  same. 

Dozen. 

Debtor. 

Each. 

Errors  excepted. 

Errors  and  omis- 
sions excepted. 

Exchange. 

Expenses. 

Figured. 

Folio. 

Forward. 

From. 

French. 

Freight. 

Guarantee. 

Gallon. 

Hogsheads. 

Insurance. 

Insolvency. 

This  month. 

Inventory. 

Interest. 

Merchandise. 

Month. 

Without  deduc- 
tion. 

Number. 

Payment. 

Paid. 

Packages. 

By. 

By  the  hundred. 

Premium. 

The  next  month. 

Pieces. 

Received. 

Shipment. 

Steamship. 

Sundries. 

The  last  month. 

Yards. 

Year. 


12 


COMMERCIAL  ARITHMETIC. 


METHODS   OF   ADDITION. 

1.  Addition  constitutes  the  greater  part  of  all  the  calcu- 
lations of  business  and  common  life  J  and  the  ability  to  add 
with  rapidity  and  accuracy  is  of  more  practical  utility  than 
all  the  other  arithmetical  operations  combined.  This  ability, 
however,  can  be  readily  acquired  by  the  exercise  of  memory 
and  the  right  kind  of  practice.  A  regular  method  should  be 
pursued ;  encumbering  the  mind  with  amounts  to  be  carried 
from  one  operation  to  another  should  be  avoided  j  and  a  prac- 
tical familiarity  with  the  sums  of  combinations  of  numbers 
should  be  cultivated  as  much  as  possible.  Any  thing  which 
lessens  the  number  of  operations  to  be  performed  promotes 
rapidity.  By  closely  adhering  to  the  following  methods,  a 
short  time  only  will  be  required  for  acquiring  considerable 
proficiency. 

2.  In  writing  numbers,  care  should  be  taken  to  make  the 
figures  clear  and  plain,  so  that  a  3  will  not  be  mistaken  for 
a  5,  or  a  7  for  a  9 j  and  also  that  the  figures  in  one  line  do 
not  run  into  those  in  the  line  below,  and  that  all  the  figures 
of  a  column  be  placed  directly  under  each  other. 

3.  Commence  at  the  foot  of  the  column  and  add  upward, 
and,  if  the  column  is  long,  always  set  down  the  carrying  figure. 
This  relieves  the  mind  from  apprehension  of  loss  of  time,  from 
being  compelled,  by  interruptions  which  often  occur  in  busi- 
ness, to  leave  the  work  when  nearly  through  the  addition  of 
several  columns  of  figures  j  and  then,  if  necessary,  any  column 
may  be  re-added  without  the  trouble  of  adding  the  preceding. 

Always  add  the  carrying  figure  to  the  next  ccluinn  on 
commencing. 

2  13 


14  METHODS    OF   ADDITION. 

4,  The  following  methods  of  retaining  the  carrying  figure 
are  adopted  by  most  accountants : — 


FIRST    METHOD. 

SECOND    METHOD. 

$13213.30 

15 
15 

25342.13 

12468.31 

27 

1143.13 

27 

35321.34 

20 

13476.21 

23 

2113.13 

10 

103077.55 

103077.55 

2  222.1  I* 

In  the  first  method,  the  figure  to  be  carried  is  written  small 
immediately  under  the  figure  to  which  it  belongs. 

In  the  second  method,  the  whole  result  of  each  column  is  set 
down  by  itself,  the  sum  of  each  column  being  written  one  place 
to  the  left  under  the  sum  of  the  column  preceding  it;  then, 
when  all  the  results  are  written,  the  right-hand  figures,  including 
all  the  footing  of  the  last  column,  will  give  the  total  result. 

5.  If  the  figures  are  not  set  down  in  regular  order  under 
each  other,  instead  of  trying  to  follow  the  column  upward, 
take  the  figure  which  is  the  same  number  of  places  from  the 
right  hand  as  the  figure  with  which  you  started,  not  regarding 
whether  it  is  below  tens  or  hundreds,  or  very  near  the  right- 
hand  figure,  or  at  some  distance  from  it.  For  instance,  if  you 
wish  to  add  a  column  of  hundreds  which  have  been  set  down 
irregularly,  instead  of  looking  for  the  next  figure  above,  look 
for  the  next  figure  which  is  three  places  from  the  right.  This 
method  will  save  time,  and  avoid  perplexity  and  uncertainty. 

6.  To  secure  accuracy,  the  addition  should  be  performed 
twice, — in  different  directions  :  this  gives  new  combinations, 
and,  if  there  has  been  a  mistake,  is  a  preventive  of  its  repeti- 
tion, which  is  likely  to  occur,  especially  when  the  mind  has 
been  too  long  engaged. 


METHODS    OF   ADDITION. 


15 


7.  If  the  columns  of  figures  are  long,  it  is  generally  better 
to  place  the  footings  on  a  separate  piece  of  paper  and  test 
their  correctness,  before  placing  them  in  ink  on  the  book;  as 
mistakes  can  then  be  corrected  without  defacing  the  pa^e  by 
erasures. 

8,  Familiarity  with  the  totals  of  combinations  should  be 
the  object  of  all  practice.  Counting  is  not  adding.  It  is 
quite  as  easy,  and  considerably  quicker,  to  say  at  once,  8  and 
7  are  15,  than  to  count  8,  9,  10,  11,  12,  &c,  up  to  the  result 
15;  and  also  to  say,  3,  6,  10,  15,  than  to  say,  3  and  3  are  6, 
6  and  4  are  10  10  and  5  are  15. 


COUNTING-HOUSE   DRILL   TABLES. 
Drill  Table  No.  1. 


20 

20 

20 

20 

20 

20 

20 

20 

20 

20 

19 

19 

19 

19 

19 

19 

19 

19 

19 

19 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

17 

17 

17 

17 

17 

17 

17 

17 

17 

17 

16 

16 

16 

16 

16 

16 

16 

16 

16 

16 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

14 

14 

14 

14 

14 

14 

14 

14 

14 

14 

13 

13 

13 

13 

13 

13 

13 

13 

13 

13 

12 

12 

12 

12 

12 

12 

12 

12 

12 

12 

11 

11 

11 

11 

11 

11 

11 

11 

11 

11 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

7 

7 

7 

7 

7 

7 

7 

7 

7 

7 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

5 

5 

5 

5 

5 

5 

5 

5 

5 

5 

4 

4 

4 

4 

4 

4 

4 

4 

4 

4 

3 

3 

3 

3 

3 

3 

3 

3 

3 

3 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

i 

16 


METHODS    OF    ADDITION. 


Drill  Table  No.  2. 


1 — 

1  20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

'  19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

The  above  columns  should  be  added  until  the  addition  can 
be  easily  performed  and  without  hesitation. 

9.  In  the  following  columns,  add  all  the  figures  enclosed  :n 
each  bracket  as'  one  number,  and  name  only  results  in  the 
same  manner  as  when  the  figures  are  taken  separately.  Thus, 
in  adding  column  No.  4,  say  7,  11,  16,  &c. 

10.  When  a  figure  is  repeated  several  times,  count  the 
number  of  times  it  occurs,  and  multiply  by  the  figure.  Thus, 
if  the  figure  8  occurs  seven  times  in  a  column,  multiply  7  by 
8  for  the  result,  instead  of  adding  seven  8's  together. 

11.  When  three  figures  occur  in  regular  order, — as  4,  5, 
6,  or  6,  7,  8, — three  times  the  middle  figure  will  be  their 
sum ;  when  five  figures  occur,  take  five  times  the  middle 
figure.     When  there  are  four  figures  in  regular  order,  take 


METHODS    OF   ADDITION.  17 

twice  the  sum  of  the  extremes;    when  there  are  six,  take 
three  times  the  sum  of  the  extremes. 


(10 

(2.) 

(30 

(40 

324 

678 

3.3    4 
3    4v6 

4)6/3) 

2\6J4\ 

4/l~il/ 

235 

789 

143 

976 

421 

899 

3\7\7J 
7/8/4} 

312 

989 

2T5I5 

3/1  \2\ 
5)3J3/ 
3    2|4 
2J6/5 

234 

988 

41616) 

2/8/1 

343 

878 

423 
225 

673 

789 

8|3|7| 
2/9/3/ 

12*3 

968 

3^0    5\ 
4^515/ 
5i  5/ 1\ 

218  H 

0  1414/ 

1  2    21 
0J4h 
1>2)1J 

334 

887 

212 

987 

324 

798 

2\3}9i 

123 

976 

3X7)51 

7\6\5J 
3/4/2 

431 

212   , 

687 
997 

im 

4419  13959  72    1    2 


ADDITION  OF   SEVERAL  COLUMNS  AT  ONE   OPERATION. 

12.  To  add  two  or  more  columns  at  one  operation. 
To  the  lower  number  add  first  the  units  of  the  next  num. 
ber  above,  then  the  tens,  then  the  hundreds;  and  so  continue. 

23  OPERATION. 

31       22  +  5  =  27,  27  +  10  =  37 

24  37i-4  =  41,41 +20  =  61 
!5       61  +  1  =  62,  62  +  30=  92 

22       92  +  3  =  95,  95  +  20  =  115  Ans. 
115 

234  OPERATION. 

II2  322  +  3  =  325  +  20  =  345  +  400=  745 
423  745  +  2  =  747  +  10  =  757  +  100=  857 
322   857  +  i  ==  861  +  30  =  891  +  200  =  1091  Anft 

1091 


18 


BALANCING   ACCOUNTS. 


Practice  will  enable  a  person  to  add  amounts  of  two  or  more 
figures  at  one  operation :  thus,  22  -f  15  =  37,  37  -f-  24  =  61,  61  -|- 
31  =  92,  92  -f-  23  =  115  Ans.  As  soon  as  the  combinations  become 
familiar,  addition  by  this  method  can  be  performed  without  diffi- 
culty ;  but,  for  ordinary  purposes,  one  column  at  a  time  is  sufficient. 
In  Ledger  accounts,  when  the  last  two  or  three  columns  are  not  all 
filled,  they  may  be  added  at  one  operation  with  advantage. 

13,  Very  long  columns  of  figures  are  sometimes  added  in 
the  following  manner : — 


FIRST    METHOD. 

247 
362 
228 
436 


1273 
128 
326 
121 

1848 
121 
316 
405 


SECOND 

METHOD. 

247 

362 

228 

436 

1273  • 

128 

326 

121 

575 

121 

316 

405 

842 

2690  Ans. 

2690  Ans. 

ADDING  HORIZONTALLY. 
14.  In  some  branches  of  business  the  ability  to  add  num- 
bers which  are  written  horizontally  instead  of  being  placed 
under  each  other,  is  often  required.     Thus, — 
824  +  325  -f  652  =  1801 
All  the  units  are  first  added,  then  tb^  tens,  and  then  the 
hundreds.     A  little  practice  will  soon  overcome  any  difficulty 
which  may  be  experienced  at  first. 
Add  434,  216,  4217,  3217. 
Add  216,  1231,  432,  1800,  2167. 
Add  the  following  numbers  as  they  stand  : — 
•     325         116        365 

431         275         218     Ans.  1730. 


BALANCING    ACCOUNTS. 


19 


BALANCING  ACCOUNTS. 
15.  It  is  frequently  of  advantage  to  the  accountant  o  find 
the  difference  between  two  sums  by  addition,  instead  of  by 
subtraction.  For  example,  if  he  wishes  to  find  the  differ- 
ence between  2427  and  1235,  instead  of  taking  the  trouble 
of  placing  the  smaller  number  under  the  larger,  he  will  add, 
mentally,  to  1235  a  sum  that  will  make  the  whole  equal  to 
2427,  writirg  the  figures  as  he  proceeds  under  1235. 
2427  1235 

1 1 92 — balance. 

When  both  sides  of  an  account  contain  several  amounts,  fiist  add 
the  larger  side  in  the  usual  manner ;  then  commence  at  the  top  of  the 
columns,  on  the  smaller  side  of  the  account,  and  add  downwards,  inserting 
the  necessary  figures  to  make  the  required  balance.  Thus,  to  find  the 
balance  of  the  following  account : 


Dr. 

V.  I,  Andrews. 

Or. 

1867. 

Jan.    3. 
"     10. 
"     24. 

To  Mdse. 

a         u 
u        a 

884.00 
72.00 
43.00 

$199.00 

Jan.  10.  By  Cash, 
Balance, 

$45.00 
67.00 
8  7.00 

First,  add  the  larger  side;  then  say,  5-f7  =  12,  and  7,  the  figure 
required  to  make  the  balance,  =19.  Set  down  7  and  carry  1.  1  -f-  4 
-f-  6  =  11,  and  the  remaining  figure  of  the  balance  =19.  To  test 
the  accuracy  of  the  work,  add  the  whole  of  the  smaller  side,  and 
include  the  balance.  •• 

EXAMPLE   II. 


Dr 

George  L.  Burtis. 

Or. 

1867. 

1867. 

Feb.    9. 

To  Mdse. 

$187.37 

Feb.  15.  By  Cash, 

$150.00 

"     26. 

II         (< 

37.42 

Mar.  10.    "       " 

437.75 

Mar.  4. 

«        (4 

260.38 

Apr.   9 

a       u 

720.16 

May   6 

U       (i 

132.50 

"       9. 

i(          If 

350.00 

20  CANCELLATION. 


CANCELLATION. 

16.  Cancellation  is  the  process  of  shortening  operations 
in  multiplication  and  division  by  rejecting  equal  factors. 

17.  Cancelling,  or  rejecting  a  factor  of  any  number  divides 
the  number  by  that  factor. 

18.  Cancelling  a  number  is   the   same  as  dividing  that 
number  by  itself,  and,  consequently,  the  quotient  is  1. 

19.  Dividing  the  multiplicand  or  multiplier  will  give  the 
same  result  as  dividing  the  product. 

360  X  24  =  8640,     8640  -5-     6  =  1440. 

360 -v-   6=     60,         60  X    24  =  1440. 

24-5-6  =       4,  4'X  360  =  1440. 

20.  If  the  dividend  and  divisor  be  both  multiplied  or  both 
divided  by  the  same  number,  the  quotient  will  not  be  changed. 

32 -=-8  =  4 

32X5  =  160, 
8X5=  40,        160-5-40  =  4. 

32-5-4  =     8, 
8-5-4=     2,  8-4-   2=4. 

8)V  =  f  =  4. 

21.  Dividing  the  divisor  will  give  the  same  result  as  multi- 
plying the  quotient. 

14)126(9,        9X2  =  18. 

14-5-2  =  7,  126-5-7  =  18. 

22.  Dividing  the  dividend  will  give  the  same  result  as 
dividing  the  quotient 

14)126(9,        9-5-   3  =  3. 
126-5-3  =  42,      42-5-14  =  3. 


1.  Divide  the  product  of  6,  8,  and  9  by  4  times  3. 

2.  A  merchant  bought  27  yards  of  cloth  at  $2.25  per  yard, 
and  paid  for  it  in  tea  at  75  cts.  per  lb.  How  many  pounds 
were  required  ?  Ans.  81  lbs. 

3.  What  will  28  pieces  of  cloth  cost,  each  piece  containing 
27  yards,  at  25  cts.  per  yard  ? 


FRACTIONS.  21 

FRACTIONS. 

RULES   FREQUENTLY   USED. 

23.  To  multiply  whole  numbers  by  fractions. 

Rule. — Multiply  by  the  numerator,  and  divide  the  product 
by  the  denominator. 

EXAMPLES. 

1.  Multipty  464  by  |. 

464  X  3  =  1392  j  1392  -*-  4  ==  348  Ans. 

2.  Multiply  12672  by  18f. 

12672 
18f 

4)38016— product  by  3. 

9504 — product  by  f . 
101376  "  "  8. 
12672  «        "  1. 

237600— product  by  18f . 

24.  To  multiply  a  fraction  by  a  fraction. 

Rule. — Multiply  the  numerators  together  for  a  new  nume- 
rator, and  the  denominators  together  for  a  new  denominator. 


1.  Multiply  |  by  4. 
2X4  =  8 
5X7  =  35      Ans.&. 


2.  Multiply  §  by  T6T. 

3.  "       Aj"    f. 

4.  «  ~7     "    15 


l7?  3  1' 


25.  To  divide  by  a  fraction. 

Rule. — Invert  the  divisor,  and  multiply  as  in  the  previous 
rules. 

1.  Divide  f  by  f . 
I  inverted  =  | 
5  X  4  =  20 
9  X  3  =  27     Ans.  g$. 

2.  Divide    4  by  j. 

3.  "       t8t  ^  §. 

4,    «    aj «  1 

5.       "       9     "   f. 


6. 

Divide 

A  by  §. 

7. 

a 

1      a      1 

4                1? 

8. 

a 

1  II      1 

2  4* 

9. 

It 

|  of  21  by  r\. 

10. 

it 

1  of  f  by  T%. 

11. 

a 

J  of  ?  by  A- 

12. 

.i 

A  by  4. 

1.  Divide  480  by  54. 

2. 

5J    480 

3. 

2          2 

4. 

11)     960 

5. 

6. 

22  DECIMALS. 

27.  To  divide  by  a  mixed  number. 

Rule. — Multiply  the  whole  number  in  the  divisor  by  the 
denominator  of  the  fraction,  and  to  the  product  add  the  nu- 
merator. Multiply  the  dividend  by  the  denominator  of  the 
fraction  ;  then  divide  as  usual.  The  remainder,  if  any,  must 
be  divided  by  the  denominator  of  the  fraction  to  obtain  the 
true  remainder. 

Divide  2675  by  18|. 
«       18992  by  133]. 
"       425  by  314. 
"       341  by  74. 
"       1227  by  97 J. 
87T3T,or87,lJReni. 


28.  To  reduce  a  decimal  to  a  common  fraction. 

Rule. —  Write  the  decimal  as  it  stands,  omitting  the  deci- 
mal point,  for  the  numerator.  For  the  denominator }  write  1 
with  as  many  ciphers  annexed  as  there  are  decimal  places  in 
the  numerator. 

EXAMPLES. 

1.  Reduce  .25  to  an  equivalent  common  fraction. 

Ans.  j2^,  which  reduced  to  its  lowest  terms  =  \. 

2.  Reduce  .375  to  a  common  fraction. 

Ans.T3uVu  =  l- 

3.  Reduce  .1875  to  a  common  fraction.     Ans.  T3ff. 

4.  Reduce  .625  to  a  common  fraction.       Ans.  f. 

29.  To  reduce  common  fractions  to  decimals. 

Rule. — Annex  ciphers  to  the  numerator,  and  divide  by  the 
denominator,  prefixing  a  point  to  the  quotient.  There  muH 
be  as  many  places  in  the  quotient  as  there  have  been  ciphers 
annexed;  if  not  enough,  prefix  ciphers. 

Note. — For  practical  purposes,  it  will  be  sufficiently  accurate  if  the 
division  be  carried  to  four  or  five  places. 


DECIMALS. 

EXAMPLES. 

1. 

Reduce  |  to  a  decimal. 

4)3.00 

.75  =  T^Ans. 

2. 

Reduce  •§•  to  a  decimal. 

3. 

4. 

u         6      u         a 
a        \      u         « 

5. 

n        2      II         U 

23 


Ans.  .375. 
Ans.  .8571 -f-. 


30.  MULTIPLICATION  OF  DECIMALS. 

Rule. — Multiply  as  in  whole  numbers,  and  from  the  right 
of  the  product  point  off  as  many  figures  for  decimals  as  there 
are  decimal  places  in  both  MULTIPLICAND  and  MULTIPLIER. 

If  there  are  not  figures  enough  in  the  product,  prefix  ciphers. 

EXAMPLES. 

1.  Multiply  4.25  by  6.5. 


4.25 
6.5 

2125 
2550 

27.625  Ans. 

2. 

Multiply  84.5  by  4. 

84.5 
4 

3. 
4. 

5. 
6. 

7. 
8. 
9. 
0. 

338.0  Ans. 
Multiply    6.425  by  4.25. 

"        18.5      «    6.75. 

"        12.575"    9.375. 

"            .25    "    6.0025. 

«            .275"    3.0025. 

"        18.625  «    5.25. 
What  is  the  cost  of  12|  lbs.  @  6|  cts.  per  lb.? 
What  is  the  cost  of  7§  yds.  at  18|  cts.  per  yd.  ? 

Note. — It  is  sometimes  more  convenient  to  change  common  fractions  to 
decimals  before  multiplying.     18£  X  12$  =  18.75  X  12.5. 


24  PRINCIPLES    OF    FRACTIONS. 

31.  DIVISION   OF   DECIMALS. 

Hole  I. — When  the  decimal  places  in  the  dividend  and 
divisor  are  equal,  divide  as  in  whole  nwhbers;  the  quotient  will 
he  in  whole  numbers. 

Rule  II. — When  the  decimal  places  in  the  dividend  exceed 
those  in  the  divisor. 

Divide  as  in  whole  numbers,  and  from  the  right  hand  of 
the  quotient  point  off  as  many  decimals  as  the  decimal  places 
in  the  dividend  exceed  those  in  the  divisor.  Should  there  be 
a  deficiency  of  figures  in  the  quotient,  it  must  be  supplied  by 
prefixing  ciphers.  If  there  be  a  remainder,  annex  ciphers, 
and  continue  the  division  as  far  as  desired,  each  cipher 
annexed  being  equivalent  to  one  more  decimal  in  the  dividend. 

Rule  III. — When  the  decimal  places  in  the  divisor  exceed 
those  in  the  dividend. 

Annex  ciphers  to  the  dividend,  and  proceed  as  before. 

EXAMPLES. 


1.  Divide  156.25  by  6.25. 

Ans.  25. 

2.       "       234.70525.  by  64.25. 

Ans.  3.653. 

3.       "       .8727587  by  .162. 

4.       "       6.25  by  .1875. 

5.       "       327|  by  4. 

PRINCIPLES   OF   FRACTIONS. 

32.  Numbers  written  in  the  form  of  a  fraction  denote 
division,  the  numerator  being  the  dividend,  and  the  denomi- 
nator the  divisor. 

33.  Multiplying  or  dividing  both  the  numerator  and 
denominator  of  a  fraction  by  the  same  number  does  not 
change  the  value  of  the  fraction. 

34.  Multiplying  the  numerator,  or  dividing  the  denomi- 
nator, of  a  fraction  multiplies  the  fraction. 

35.  Dividing  the  numerator,  or  multiplying  the  denomi- 
nator, divides  the  fraction. 


REDUCTION.  25 


DENOMINATE   NUMBERS. 

36.  A  Denominate  dumber  is  composed  of  simple 
numbers  of  different  denominations. 

37.  Reduction  is  the  process  of  changing  numbers  from 
one  form,  or  denomination,  to  another,  without  altering  their 
values.     (For  Tables,  see  Weights  and  Measures.) 

REDUCTION  DESCENDING. 

38.  To  reduce  numbers  from  a  higher  denomination  to  a 
lower. 

Rule. — 1.  Multiply  the  number  of  the  highest  denomination 
by  the  number  which  one  of  this  denomination  makes  of  the 
next  lower. 

2.  Add  to  the  product  the  number  in  the  next  lower  denomi- 
nation,  if  any. 

3.  Proceed  in  the  same  manner  through  the  lower  deitomi' 
nations  to  the  one  required. 

EXAMPLES. 

1.  Reduce  £10  7s.  lOd.  to  pence. 

10 

20  shillings  in  a  pound. 

~200 

207  shillings. 
12  pence  in  a  shilling. 

2484 
10 

Ans.  2494  pence. 

2.  How  many  pints  in  22  bushels,  6  qts.  1  pint  ? 

3.  How  many  inches  in  6  rods,  2  yds.  8  ft.  6  inches? 

4.  Ho^  many  minutes  in  one  day'/ 

5    How  many  pounds  in  1  ton,  3  cwt.  3  qrs.  10  lbs.? 
6.  Reduce  75  bushels  to  pints. 


26  REDUCTION. 

REDUCTION  ASCENDING. 

39.  To  reduce  a  number  from  a  lower  denomination  to  a 
higher. 

Rule. — Divide  the  given  number  by  the  number  required 
to  make  one  of  the  next  higher  denomination. 

Divide  the  quotient  thus  obtained  as  before,  and  so  proceed 

to  the  denomination  required. 

Note. — The  remainders,  if  any,  are  of  the  same  denomination  as 
the  numbers  divided. 

EXAMPLES. 

1.  In  1275  pence,  how  many  pounds? 

12)1275 

20)  106s.  3d. 

£5    6s.        Ans.  £5  6s.  3d. 

2.  Reduce  15485  lbs.  to  tons. 

3.  Reduce  632687  feet  to  miles. 

4.  In  7846  grains  of  gold,  how  many  lbs.  ? 

40.  To  find  the  value  of  one  denomination  in  numbers  of 
another  denomination  having  different  relations. 

Rule. — Reduce  the  given  numbers  to  a  denomination  which 
is  common  to  both,  then  reduce  the  result  to  the  denomination 
required. 

EXAMPLES. 

1.  How  many  Ells  English  in  600  Ells  French? 
Remark. — Both  denominations  can  be  reduced  to  quarters. 

600  Ells  French  =  3600  qrs. 

3600  qrs.  reduced  to  Ells  English  =  720,  Ans. 

2.  Estimating  a  gallon  wine  measure  to  contain  231  cubic 
inches,  and  a  gallon  beer  measure  to  contain  282  cubic 
inches,  how  many  gallons  beer  measure  are  there  in  640 
gallons  wine  measure  ? 

3.  If  a  dollar  is  worth  in  Can  ten  4s.  4c?.,  how  many  dollars 
are  eqial    a  value  to  £1500? 


DENOMINATE  NUMBERS.  27 

FRACTIONS  OF  DENOMINATE  NUMBERS. 

41.  To  reduce  a  fraction  of  one  denomination  to  whole 
numbers,  or  to  an  equivalent  fraction,  of  another  denomina- 
tion. 

Rule. — Multiply  or  divide  the  fraction  by  the  same  num- 
bers that  would  be  employed  in  the  reduction  of  whole  numbers. 

EXAMPLES. 

1.  What  is  the  value  of  T%  of  £1  ? 

AX20  =  fg=:3l|S. 

i|  X  12  =  VV  =  9^.     Ans.  3s.  9<£ 

2.  What  part  of  £1  is  |  of  a  penny? 

45   "J"  20  =  -gfa.         AnS.     -gljf. 

3.  What  part  of  a  bushel  is  |  of  a  quart? 

4.  Reduce  f  of  a  day  to  lower  denominations. 

5.  Add  |  of  a  pound  to  |  of  a  shilling.     Ans.  15s.  lOd. 

6.  Reduce  J  of  a  lb.  to  the  fraction  of  a  cwt. 

7.  What  part  of  an  acre  is  |  of  a  rod  ? 

42,  To  reduce  a  denominate  number  to  a  fraction  of 
another  denomination. 

Rule. — Reduce  the  given  numbers  to  the  lowest  denomina- 
tion mentioned,  for  the  numerator,  and  a  unit  of  the  denomi 
nation  of  the  required  fraction  to  the  same  denomination,  for 
the  denominator. 

EXAMPLES. 

1.  Reduce  7s.  4d.  lfar.  to  the  fraction  of  a  pound. 

7s.  4d.  lfar.  =  353/ar. 

£1  =  960  "      Ans.  f  §§. 

2.  Reduce  1  pint  to  the  fraction  of  a  gallon. 

3.  What  part  of  a  bushel  are  3  qts.? 

4.  What  part  of  a  week  are  3  hours  ? 

5.  What  part  of  a  mile  are  5  feet  ? 


28  DENOMINATE   NUMB  E  AS. 

DECIMALS   OF   DENOMINATE   NUMBERS. 

43.  To  reduce  a  denominate  number  to  a  decimal  of  a 
higher  denomination. 

Rule. — Annex  ciphers  to  the  lowest  denomination,  and 
divide  by  that  number  which  will  reduce  it  to  the  next  higher 
denomination,  and  annex  the  quotient  as  a  decimal  to  that 
higher.  Then  divide  that  higher  denomination  as  before,  and 
so  continue  dividing  until  the  whole  is  reduced  to  the  denomi- 
nation required.     Or, 

Reduce  the  given  number  to  a  common  fraction  of  the  de- 
nomination required,  and  reduce  this  fraction  to  a  decimal. 

EXAMPLES. 
1.  Reduce  £7  15s.  6c?.  Sfar.  to  the  decimal  of  a  pound. 


4 
12 

20 


3.00 


6.75000         Sfar.  =  .75  of  a  penny. 
15.5625  6.75c?.  =  .5625  of  a  shilling. 


.£7.778125       15.56250s.  =  .778125  of  a  £. 
Ans.  £7.778125. 
2.  Reduce  £617  Is.  lc?.  to  the  decimal  of  a  pound 
12  1.0000 

20 


1.0833 


£617.05416.     Ans. 
Note. — For  a  shorter  practical  method  for  sterling  money,  see  page  43. 

3.  Reduce  3  bus.  1  pk.  3  qts.  to  the  decimal  of  a  bushel. 

4.  Reduce  3  qrs.  12  lb.  8  oz.  to  the  decimal  of  a  ton. 

5.  Reduce  2  gals.  1  qt.  1  pt.  to  the  decimal  of  a  gallon. 

44.  To  reduce  a  denominate  decimal  to  whole  numbers. 

Rule. — Multiply  the  given  decimal  as  in  reduction  of 
whole  numbers,  and  point  off  in  the  product  as  in  multiplica- 
tion of  decimals. 

The  numbers  on  the  left  of  the  decimal  point  will  be  thi 
whole  numbers  required. 

Note.— Only  the  decimal  part  of  each  number  should  be  multiplied. 


DENOMINATE   NUMBERS. 


29 


EXAMPLES. 

1.  What  Is  the  value  of  .625  of  a  pound? 

.625 
20 


12.500 
12 

6.000. 


A.ns.  12s.  6d. 

2.  What  is  the  value  of  .875  of  a  ton? 

3.  What  is  the  value  of  1.875  of  a  bushel? 

4.  What  is  the  value  of  .425  of  a  pound  trc7? 

5.  What  is  the  value  of  2.19375  of  a  year? 


MISCELLANEOUS   EXAMPLES. 

1.  How  much  money  is  required  to  pay  for  the  following 
goods  ? 


32^  yards  muslin,  at  16-|  ets.  per  yard. 
184  lbs.  tea.  (a).  $1.15  oer  lb. 


18|  lbs.  tea,  @  $1.15  per  lb. 

17A  lbs.  coffee,  at  22^  cts.  per  lb. 

15|  lbs.  lard,  at  16 J-  cts.  per  lb. 

23|  lbs.  chrome  yellow,  at  37A  cts.  per  lb. 

19T^j  feet  brass,  at  23 A  cts.  per  foot. 

f  Ans. 

2.  If  a  piece  of  land  is  worth  $317.50,  what  is  §  of  it 
worth  ?     What  is  1  ?     What  is  f  ? 

3.  A  man  sold  4|  acres  of  land  for  $320.     How  much  did 
he  receive  per  acre: 

4.  A  United  States,  or  Winchester,  bushel  contains  2150.42 
cubic  inches:  how  many  mbic  inches  in  134  bushels? 

5.  What  is  |  of  T%  of  $117?  of  $585? 

6.  Bought  i5i  tons   Russian  hemp  for  $4325.50:    what 
was  the  price  per  ton  ? 

7.  What  is  the  cost  of  3  metres  gold  chain,  at  ,$3.25  per 
inch,  each  metre  :sontainii  g  39.371  inches? 

8.  What  is  the  7alue  of  15  gals.  1  qt.  1  pt.  of  wine,  at  $3.75 
per  gallon  ? 

3* 


80  PRACTICE. 

PRACTICE. 

45.  Practice  is  a  brief  method  of  ascertaining  the  total 
value  of  a  quantity  by  combining  the  values  of  convenient 
aliquot  parts. 

46.  An  Aliquot  Part  is  some  fraction  of  a  quantity 
whose  numerator  is  1. 

EXAMPLES. 

1.  What  is  the  value  of  336  yds.  cloth,  at  18f  cts.  per  yd.  ? 


12£/  =  £  of  a  dollar. 
6|    =  |  of  12J0. 


8)$336  value  at  $1    per  yd. 

2)42     "      "  121/"    « 
21     «      «     6|/"    " 

Ans.  $63     *      "   18}/ «    " 

2.  How  much  will   1232  bushels  wheat  cost,  at  %lMj 
per  bushel? 

1232 
1.314 


4)1232  cost  at  $1.00      per  bu. 
4)  308       "  .25/     "     M 

77       "  6|/  «     " 

Ans.  $1617       "      $1,311     «     " 

3.  What  will  28  bus.  3  pks.  4  qts.  clover-seed  cost,  at  $3.50 
per  bus.  ? 

$98.00    =  cost  of  28  bus. 
I  of  3.50    as      1.75    =   «    "  2  pks. 

A  "  1.75    s=        .871=   "     "  1    " 

|  «     .87*  s=         .43|  =    "     "  4  qts. 

Ans.  $101,061  =   «     «    28  bus.  3  pks.  4  qts. 

4.  What  will  270  yds.  silk  cost,  at  £1  5s.  6d.  per  yard  ? 

Ans.  £344  5s. 

5.  What  will  326  bbls.  flour  cost,  at  $7.87J  per  bbl.  ? 

6.  Required  the  cost  of  12  gals.  3  qts.  1  pt.  of  /nolasses,  at 
62  A  cts.  per  gallon. 


CONTRACTIONS 


MULTIPLICATION  AND  DIVISION 


The  following  contractions  are  useful  for  imparting  readi- 
ness and  dexterity  in  the  mechanical  processes  of  multipli- 
cation and  division.  If  thoroughly  mastered,  they  will  be 
found  to  be  of  great  service,  and  will  amply  repay  the  time 
and  labor  expended  in  acquiring  them.  They  include,  in  a 
condensed  form,  nearly  all  of  practical  value  that  has  yet 
been  published,  together  with  some  methods  which,  it  is  be- 
lieved, now  appear  in  print  for  the  first  time. 

The  labor  of  making  out  bills  and  invoices,  entering  sales, 
taking  account  of  stock,  and  many  similar  operations,  may 
be  much  lessened  by  their  use ;  as  extensions  can  be  made 
without  writing  out  the  operations,  while  the  liability  to  mis- 
takes is  diminished,  because  there  is  less  labor,  and  fewer 
figures  are  employed. 

31 


32 


CONTRACTIONS    IN    MULTIPLICATION. 


CONTRACTIONS   IN   MULTIPLICATION. 

47.  To  multiply  two  numbers  of  two  places  each  when  the 
units  or  tens  are  alike. 

Rule. — Multiply  units  by  units;  then,  IP  the  units  ARE 
A  like,  multiply  the  sum  of  the  tens  by  the  units,  and  the  tens 
by  tens.  If  THE  TENS  ARE  ALIKE,  multiply  the  sum  of  the 
units  by  the  tens,  and  the  tens  by  tens;  in  all  cases  carrying 
as  usual. 


EXAMPLES. 


1.  Multiply  34  by  54. 


34 
54 


1836 


4  X  4  =  16 

5  +  3=    8X4  =  32  +  1  (carried)  =  33 
3  X  5  =  15  +  3  (carried)  =  18 


2.  Multiply  45  by  43. 

45        5  X  3  bs  15 

43         5  +  3=    8X4  =  32  +  1  (carried)  =  33 
16  +  3  (carried)  =  19 

10.  Multiply  36  by  34. 
11. 

12.  « 

13.  " 
14. 

15.  " 

16.  « 

45  X  45  =  5  X  4  with  the  square  of  5  annexed. 
75  X  75  =  8  X  7         "  "         5 

48.  This  rule  includes  the  multiplication  of  two  numbers  whose 
units  or  tens  are  ones,  the  squaring  of  numbers,  multiplying  when 
the  units  are  alike  and  the  sum  of  the  tens  is  ten,  &c. 

As  it  is  capable  of  several  hundred  applications,  its  value  is  ob- 
vious. A  little  practice  will  give  the  ability  to  write  the  products 
without  setting  down  the  figures  to  be  multiplied.  It  is  believed 
that  this  is  the  first  time  the  above  rule  has  appeared  in  print. 


1935 

4X4  = 

3. 

Multiply  44  by  64. 

4. 

u 

32  «  72. 

5. 

a 

28  "  18. 

6. 

a 

45  "  35. 

7. 

u 

123  «  33. 

8. 

u 

65  "  55. 

9. 

ti 

124  "  34. 

64  ' 

<   64. 

35  < 

<  34 

72  * 

■  73. 

37  < 

«  35 

45  ■ 

<  45. 

66  ' 

1  66. 

CONTRACTIONS    IN    MULTIPLICATION. 


33 


49.  To  multiply  by  numbers,  the  half,  third,  or  fourth  of 
which  is  a  convenient  multiplier. 

Rule. — Multiply  the  half  of  one  number  by  twice  the  other, 
or  one-third  of  one  number  by  three  times  the  other,  &c. 


EXAMPLES. 


1.  Multiply  28  by  16. 

28  X  2  =  56 
16  -f-  2=    8 

2.  Multiply  35  by  27. 

27  --  3  =     9 
35  X  3  =  105 


56  X  8  =  448. 


105  X  9  =  945. 


50.  This  rule  is  well  adapted  for  mental  operations,  and  is  espe- 
cially applicable  to  numbers  which  can  easily  be  changed  to  tens, 
hundreds,  &c. 

3.  Multiply  42  by  15. 


5. 
6. 
7. 

8 

56  X  4  =  224,  28  ~  4  =  7,  224  X  7  =  1568. 

51.  To  multiply  when  one  part  of  the  multiplier  is  a  factor 
or  multiple  of  the  other. 

Rule. — Multiply  by  the  smaller  part  of  the  multiplier; 
then  multiply  the  product  so  obtained  by  the  number  which 
shows  how  many  times  this  smaller  part  is  contained  in  the 
other,  placing  the  right-hand  figure  of  the  second  product: 
under  the  right-hand  figure  of  that  part  of  the  multiplier  M» 
which  it  belongs 


42  -j-  2  =  21 

15  X  2  =  30 

21  X  30  =  630. 

>ly  76  by  15. 

9. 

Multiply  48  by  13|  = 

16  by  40. 

134  "  35. 

10. 

«        36  "  22^. 

43  "  24. 

11. 

"        24  "  231. 

182  "  18. 

12. 

"      136  "  45. 

56  "  28. 

13. 

*        28  "  174. 

34 


CONTRACTIONS    IN    MULTIPLICATION. 


EXAMPLES. 

I.  Multiply  285  by  164. 

16-r-4  =  4  285 

164 


1140  product  by  4. 
4560    4  times  the  product 
ioT^O     by  4  =285X16. 


2.  Multiply  654  by  436. 

654 
436 

2616       product  by  4. 
23544  9  times  the  prod. 

2^Tii      *y  4  =  664X86. 

3.  Multiply  364  by  126. 

4.  "        387  «   279. 


5.  Multiply  4267  by  142. 


6. 

« 

276  < 

<  357 

7. 

<.: 

812  < 

1  426 

8. 

iC 

373  ' 

<   369 

9. 

a 

235  « 

t   424 

10. 

a 

644  < 

'  321 

11. 

u 

342  < 

<  535 

12. 

U 

822  < 

■  642 

13. 

a 

545  ' 

«  927 

14.  The  custom-house  value  of  a  franc  is  18.6  cents  :  what 
is  an  invoice  amounting  to  32165  francs  worth  in  United 
States  currency  ? 

15.  What  is  an  invoice  of  cassimeres,  valued  at  £3225, 
worth,  the  custom-house  value  of  a  pound  sterling  being 
$54.84? 

52.  To  multiply  by  any  number  ending  with  9. 
Rule. — Multiply  by  the  next  higher  number,  and  subtract 
the  multiplicand. 


1.  Multiply  42  by  39. 
39  +  1=40 
42X40  =  1680 
1680  —  42  =  1638. 

2.  Multiply  45  by  99. 


EXAMPLES. 

3. 

Multiply 

432  by  59. 

4. 

tt 

125  «  699. 

5. 

a 

175  "  290 

. 

6. 

a 

325  «  909. 

Ans, 

7. 

u 

424  "  9£. 

• 

8. 

u 

36  "  68J. 

CONTRACTIONS    IN    MULTIPLICATION.  35 

53.  To  multiply  by  two  figures  at  ODce. 

Rule  I. — Multiply  both  figures  in  the  multiplier  by  each 
figure  in  the  multiplicand  separately.     Or, 

Rule  II. — Multiply  units  by  units;  then  to  the  product  of 
each  succeeding  figure  in  the  multiplicand  by  the  units  of  the 
multiplier,  add  the  product  of  the  figure  preceding  it  by  the 
tens,  and  carry  as  usual.  Multiply  the  last  figure  of  the  mul- 
tiplicand by  the  tens  of  the  multiplier. 

Note. — When  large  numbers  are  to  be  multiplied,  for  the  purpose  of 
remembering  which  figure  has  been  used,  place  a  dot  over  each  figure  of 
tho  multiplicand  as  soon  as  multiplied. 

EXAMPLE    UNDER    RULE    I. 

Multiply  3265  by  24. 

3265         24  X  5  =  120,  24  X  6  =  144  +  12  (carried) 
24  s  156. 

24  X  2  =  48  +  15  (carried)  =  63,  24  X  3  + 
6  (carried)  =  78. 

EXAMPLES   UNDER   RULE   II. 

1.  Multiply  34  by  43. 

43  3X4  =  12,  write  2. 

34  4x4  =  16  +  1  (carried)  =  17  to  carry. 

77^  3X3  =  9  +  17         "        =26,  write  6. 

4x3  =  12  +  2         "        =14. 

2.  Multiply  212121  by  23. 

212121  2         12         12         1 

23  23 


78360 


4878783 


2X2 


2  X  311  X  312  X  311  X  3  2  X  3  1  X  3 


1  X  212  X  211  X  2.2  X  2 


1X2 


Ans.  4  8  7         8         7  8         3 

With  a  little  practice,  the  products  may  be  written  without  the 
trouble  of  writing  the  numbers  under  each  other,  which  often,  as 
in  making  out  invoices,  entering  sales,  &c,  effects  a  considerable 
saving  of  time.  When  thoroughly  understood,  the  liability  to  mis- 
takes is  less  than  by  the  ordinary  method,  because  there  are  fewer 
operations. 


36 


CONTRACTIONS    IN    MULTIPLICATION. 


3.  Multiply  42  by  14.                     5. 

Multiply  63  by  31 . 

4.         «  '      36    «  16.                     6. 

26   "  51. 

Find    the  answers   to  the   following 

by  multiplying    t 

cumbers  as  they  stand  : — 

24  yards  calico         @  14c.  per  yd. 

Ans.  83.36. 

52  lbs.  sugar            @  17c.  per  lb. 

M 

36  bus.  oats             @  51c.  per  bus. 

U 

48  bus.  corn            @  63c.  per  bus. 

<• 

362  yds.  carpeting  @  77c.  per  yd. 

u 

28  lbs.  tea                @  74c.  per  lb. 

i;  . 

72  yds.  muslin         @  42c.  per  yd. 

(i 

34  gross  pens           @  85c.  per  gross. 

a 

the 


54.  To  multiply  when  the  multiplier  is  a  convenient  or 
aliquot  part  of  10,  100,  1000,  &c. 

Rule. — Annex  as  many  ciphers  to  the  multiplicand  as 
there  are  in  the  number  of  which  the  multiplier  is  an  aliquot 
part;  then 

Take  such  part  of  the  multiplicand  so  increased,  as  the  mul- 
tiplier is  of  the  number  of  which  it  is  an  aliquot  part. 

EXAMPLES. 

1.  Multiply  424  by  25. 

25  =  \  of  100.     42400  -f-  4  =  10600. 

2.  Multiply  4936  by  12£. 

12£  =  4  of  100.     493600  4-  8  ==  61700. 


ALIQUOT  PARTS 
OF  10. 

ALIQUOT  PARTS 
OF  100. 

ALIQUOT  PART 
OF  1000. 

H  =  i 

6i=A 

i»l=A 

831= A 

8J=J 

12  1 

lfn-I 

11=1 

11     1 

if  —  1* 

or  \  of  \ 

°3  —  T2 

or  i  of  J 
121  —  ' 

14.2  1 

or^+iof* 

3if=A 

37i  =  | 
621  =  I 
66|— J 

125   =4 
166f  =  J 
250   =4 
3331=4 
375    =| 

161  =  h 
25    =  3 

75   =| 

83J  =  | 

625    =  § 
833i  =  | 

33i=| 

871- =  I 

875   =J 

55.   This  table  can  also  be  used  to  show  the  value  of  an  aliquot  part 
For  example,  f  >/  1000  equal  025  ;  §  o/  100  a*  88  J.  * 


CONTRACTIONS    IN    MULTIPLICATION. 


37 


3.  Multiply  48  by  2*. 


4. 
5. 
6. 
7. 
8. 
15. 
12*  = 


18 
384 
486 
165 

96 


Si 

"  12J. 
"  16|. 

"  33J. 
"  If 


9.  Multiply  320  by  6* 

10.  "        840  "   84. 

11.  "        225  "   142. 

12.  «        648  «   125. 

13.  "        726  <t  166§. 

14.  "      2456  «  374. 
18|c.  per  yd.? 


2. 

Multiply  36  by  18f 

3. 

48  "   134- 

4. 

33  «   35. 

5. 

36  "  344. 

What  is  the  cost  of  12  £  yds.  cloth 

:  i  ;  changing  18|  to  a  decimal,  18.75  -4-8  •=»  $2.34f. 

56.  Aliquot  parts  may  be  conveniently  used  when  the 
multiplier  is  but  little  more  or  less  than  an  aliquot  part. 

EXAMPLES. 

1.  Multiply  24  by  17*. 
17§  =  16J  +  1;  16f  =  *. 
24Xl6t  =  400 
24  X  1  =        24 

424  Ans. 

57.  To  multiply  mixed  numbers  in  which  the  fractions 
are  alike. 

Rule. —  To  the  product  of  the  whole  numbers  add  that  part 
of  their  sum  which  is  expressed  by  the  fraction,  and  the  pro- 
duct of  the  fraction  multiplied  by  itself 

Note. — Perform  the  operation  mentally  whenever  it  can  be  done: 
EXAMPLES. 

1.  Multiply .6 J  by  4*. 

"    6X4  =  24 
J  of  (6  +  4)  =    5 

4  X  i  =  _J     29*  Ans. 

8.  Multiply  12|  by  3*. 

J  of  15  =  3* 
|+^  =  ||.     Ans.  3913. 

9.  Multiply  16|  by  9$. 
10.         «  3*    '   6f 

58.  When  the  whole  numbers  are  alike,  and  the  fraction  is  one- 
half,  the  half  of  the  sum  of  the  whole  numbers  equals  one  of  the 
numbers,  and  the  operation  can  be  shortened  by  multiplying  the 
whole  number  by  itself  plus  1,  and  annexing  *:  — 

L}X4*  =  5X4-f£  =  20j. 
4 


2. 

Multipl} 

r  81  by  4* 

3. 

u 

6*    *   94 

4. 

u 

8*   "  44 

5. 

u 

74  "  8i 

6. 

ti 

44  "  44 

7. 

u 

6f   "  6f 

38 


CONTRACTIONS    IN    MULTIPLICATION. 


59.  This  rule  will  apply  to  whole  numbers,  by  taking  the  units 
as  so  many  parts  of  ten,  and  the  tens  as  so  many  pans  of  one  hun- 
dred. Thus,  to  multiply  45  by  45:  40  equals  4  tens,  5  equals  one- 
half  of  ten,  and  one-fourth  of  one  hundred  equals  25  ;  then,  5X4  = 
20,  to  which  annex  £  of  100,  that  is,  25,  and  we  have  2025. 

12.  Multiply  650  by  650. 

13.  «        450  "  450. 


11.  Multiply  65  by  65. 

12.  "        35   "  35. 


(JO.  To  multiply  mixed  numbers  when  the  whole  numbers 
are  alike. 

Rule. —  To  the  product  of  the  whole  numbers  add  that  part 
of  one  of  them  which  is  expressed  by  the  sum  of  the  fractions, 
and  the  product  of  the  fractions. 


EXAMPLES. 


1.  Multiply  121  by  121. 
12X12  =  144 


I      1  —  2 
T"I  —  4 


f  of  12  =  9 

4"    X  5  = 

U4  +  9  +  | 


153£  Aus. 


2.  Multiply  8-]  by  8J 


81 

64 

7J 
84 


6f 

W 

72. 

81. 


Note. —  When  the  sum  of  the  fractions  equals  one,  and  the  whole  numbers 
are  alike,  that  part  of  one  of  them  which  is  expressed  by  the  sum  of  the 
fractions  is  equal  to  itself,  and  the  operation  can  be  shortened  by  multiplying 
the  whole  number  by  itself  plus  1,  and  annexing  the  product  of  the  fractions. 

Thus,  to  multiply  8 J-  by  8|  :— 
*  +  *  =  *.  orl; 
9X8  =  72 


10.  Multiply  4§  by  4 1. 

11. 

12. 

13. 

14. 


124 


6#. 


|  of  8  =  8 

*Xt«A 

72^  Ans. 

15.  Multiply  4.25  by  4.75 

4.25  =  41 

4.75  =  4| 

5X4  =  20 

1    V  3  3 

4    ^4  1  5 

3    

is  —  * 

1875 

20.1875  Ans. 

61.  To  multiply  any  mixed  numbers. 

Rule. — Multiply  by  the  fraction  of  the  multiplier,  then  by 
the  whole  number ; — or,  Reduce  both  multiplier  and  multipli- 
cand to  improper  fractions,  arid  then  proceed  as  in  mulfiplica- 
lion  of  fractions. 


CONTRACTIONS    IN    MULTIPLICATION.  39 


EXAMPLE. 


Multiply  6|  by  9£. 


6J 

Or,  6>  =  y> 

H=f¥ 

3£  prod,  by  A. 
3       "      of  -f  by  9. 
54       «       "  6  "  9. 

¥  x  V  * 

agi  =  60J. 

Ans.  601. 

62.  To  multiply  by  numbers  which  are  from  1  to  12  less 
than  100,  1000,  &c. 

Rule. — Multiply  the  multiplicand  by  the  difference  between 
the  multiplier  and  100,  1000,  &c,  and  subtract  the  product 
from  the  product  of  the  multiplicand  by  100,  1000,  &c. 


examples. 


1.  Multiply  35  by  98. 

98  =  100  —  2 
35  X  2  =  70 
35X100  =  3500 
3500— 70  =  3430  Ans. 

2.  Multiply  125  by  198. 

3.  "        205 '"  96. 

4.  "        375  "  89. 


5.  Multiply  215  by  98. 

Note. — When  from  1  to  12  more 
than  100,  add  the  product  of  the 
multiplicand  by  the  unit  figure,  after 
annexing  the  required  number  of 
ciphers. 

325X102=32500  +  650  =  33150 
Ans. 

6.  Multiply  475  by  101, 
103,  106. 


63.  To  multiply  two  numbers  which  are  equidistant  from 
any  number  which  may  be  squared  mentally. 

Rule. — From  the  square  of  the  mean  number  subtract  thi 
square  of  the  difference  between  the  mean  number  and.  one  of 
the  given  numbers. 

EXAMPLES. 

1.  Multiply  98  by  102. 

100,  the  mean  number  between  98  and  102; 
Square  of  100  =  10000 ;  4  =  the  square  of  the  difference ; 
10000—4  =  9996  Ans. 


40  CONTRACTIONS    IN    DIVISION. 


2.  Multiply  32  by  28. 

Square  of  30  ==  900 ; 
900  —  4  =  896.  . 

3.  Multiply  41  by  39. 


4.  Multiply  88  by  92. 

5.  "        37  "  43. 

6.  "        46  «  34. 

7.  "        73  "  87. 

8.  "        41  "  59. 


When  the  sum  of  the  units  equals  ten,  and  one  of  the  tens  is  an  oda 
number  and  the  other  is  an  even  number,  the  numbers  are  equidistant 
from  some  number  of  tens,  which  is  obtained  by  taking  half  of  the 
sum  of  the  tens  plus  1. 

9.  Multiply  45  by  95.         |       10.  Multiply  35  by  65. 

64.  This  rule  includes  multiplying  by  numbers  of  two  places  each, 
when  the  sum  of  the  units  is  10  and  the  difference  of  the  tens  is  1 ;  by 
numbers  the  sum  of  whose  units  equals  10,  and  whose  tens  are  alike; 
mixed  numbers,  in  which  the  sum  of  the  fractions  equals  1,  and  the 
difference  of  the  whole  numbers  is  1. 


11.  Multiply  12£  by  11£. 

Ans.  143|. 

12.  Multiply  7i  by  6f . 


13.  Multiply  4i  by  3f . 

14.  «        61   "   59. 

15.  «      126  "  114. 


65.  To  square  any  number  of  9's  instantaneously. 

Rule. — Beginning  at  the  left,  write  9  as  many  times  less  1 
as  there  are  9's  in  the  given  number,  an  8,  as  many  ciphers  as 
#'s,  and  1. 

The  square  of  999  =  998001 ;  square  of  9999  =  99980001 
The  square  of  any  number  of  3's  equals  £  the  square  of  the 
same  number  of  9's. 


CONTRACTIONS   IN   DIVISION. 

66.  Multiplying  or  dividing  both  the  dividend  and  divisor  by  the 
same  number  does  not, alter  the  quotient. 

(>7.  To  divide  by  any  number  ending  in  5,  or  an  aliquot 
part  of  10,  or  any  number  of  tens. 

Rule. — Multiply  both  the  dividend  and  divisor  by  any 
number  that  will  make  the  divisor  equal  some  number  of  tens 
or  hundreds ;  then  divide  as  usual. 

Note. — If  there  is  a  remainder,  it  must  be  divided  by  the  number  by  which 
the  dividend  was  multiplied,  to  obtain  the  true  remainder. 


CONTRACTIONS    IN    DIVISION. 


41 


EXAMPLES 

1.  Divide  4480  by  35. 

3. 

Divide  6785  by  45. 

35  X  2  =  70 

4. 

"   3725  m  75. 

4480  X2  =  8960 

5. 

"   628750  by  55. 

8960  -s-  70  =  128  Ans. 

6. 

«  2628000  «  225, 

2.  Divide  3644900  by  175. 

by22A,m,  231,  17}, 
181  or  18g. 

175  X  4  =  700 

3 '                    b 

3644900X4  =  14579600 

14579600 --700  =  20828  Ans. 

08.  To  divide  by  an  aliquot  part  of  100,  1000,  &c. 

Rule. — Multiply  the  dividend  by  the  number  which  ex- 
presses how  many  times  the  given  divisor  is  contained  in  100, 
1000,  &c,  and  point  off  as  many  places  as  there  are  ciphers 
in  the  number  divided  by  the  given  divisor. 

EXAMPLES. 

1.  Divide  485  by  25. 
100 -v- 25  =  4 


485  X  4  =  19.40  Ans. 

2.  Divide  8480  by  12*. 
100 --12|  =  8 

8480  X  8  =  678.40  Ans. 

3.  Divide  69600  by  16§. 


4.  Divide  4762000  by  33i. 

5.  a       2875         «   62*. 
62*  =  |  of  100 

2875 


5)23000 


46.00  Ans. 


62 1  =  |  or  ijl :  therefore,  if  the  number  is  multiplied  by 
4  and  the  product  by  4,  and  three  places  be  pointed  off,  the 
same  result  will  be  obtained. 

69.  To  divide  by  numbers  greater  or  less  than  10  or  100 
by  an  aliquot  part 

Rule. — Find  what  part  of  the  given  divisor  the  difference 
between  it  and  10  or  100  equals  ;  then 

Increase  the  dividend  by  this  aliquot  part  of  itself,  if  the 

divisor  is  less,  but  diminish  it  if  the  divuor  is  more  than  10 

or  100,  and  point  off  as  many  decimals  as  there  are  ciphers 

in  the  number  of  tens  taken. 

4..* 


42 


CONTRACTIONS    IN    DIVISION. 


EXAMPLES. 


1.  Divide  3165  by  7*. 
10  —  7J=2£ 
2£  =  £of  7i 
To  3165 
Add  1055  =  i  of  3165 

422.0         Ans.  422. 

3.  Divide  18764  by  M*. 

4.  "         2465  "   75. 

5.  -  «       42736  "   834, 


2.  Divide  6345  by  15. 

15  =  10  +  5 

5  =  iof  15 

From  6345 

Subtract  2115  =j  of  6345 

423.0  Ans.  423 


6.       "       37254 


88f. 


7. 

Divide  18992  by  1334 

8. 

<«        7462  "    1661 

9. 

"         4265  "    116§ 

10. 

«         3256  «   87,'T. 

70.  To  divide  by  any  number  but  little  less  than  100, 
1000,  &c. 

Rule. —  Cut  off  from  the  right  of  the  dividend  as  many 
figures  as  the  divisor  contains. 

Multiply  the  figures  on  the  left  of  the  point  by  the  difference 
between  the  divisor  and  100,  1000,  &c.  Point  off  as  many 
figures  as  there  are  in  the  divisor,  and  write  the  product  under 
the  dividend. 

Multiply  the  part  of  this  product  on  the  left  of  the  point,  ij 
any,  by  the  same  multiplier,  cut  off,  and  set  down  as  before. 

Continue  so  until  the  number  of  figures  in  the  product  do  not 
exceed  those  in  the  divisor ;  then  add  the  several  results,  and 
to  the  sum  add  the  product  of  the  number  of  units  carried  to 
the  left  of  the  point ,  if  any,'  by  the  number  used  as  a  mul- 
tiplier. 

Tlie  part  on  the  left  of  the  point  will  be  the  quotient;  that  on 

the  right,  the  remainder. 

If  the  remainder  exceeds  the  divisor,  carry  one  to  the  quotient,  and  takt 
thi  difference  between  the  divisor  and  remainder  for  the  true  remainder. 


EXAMPLES. 

de  5532  by 

98 

98)55 

32 

10 

2 

100  —  98  =  2 
55X2  =  110 
1X2  =  2 

56 

44 

56JJ 

Ans. 

SPECIAL    CONTRACTIONS. 


43 


2.  Divide  485  by  95. 

95)4  85 

20 

5 

05 

5,  the  product  of  1  (the  number  cai 

5 

10         across  the  pouit)  by  5. 

3.  Divide  11201  by  98. 

5.  Divide  4268  by  93. 

4.       "         3267  "    97. 

6.       "       4264  "   88. 

Ans.  33§«. 

7.       "       2487  «   91. 

CALCULATIONS   USED   IN   PARTICULAR 
BRANCHES   OF  BUSINESS. 

71.  To  find  the  value  of  tons  and  hundred-weight  without 
the  use  of  fractions. 

Rule. — Multiply  the  number  of  hundred-weight  by  5,  and 
annex  the  product  to  the  tons,  as  so  many  hundredths  of  tons; 
then  multiply  by  the  yfccn  price  per  ton,  and  point  off  two 
decimals. 

EXAMPLES. 

1.  What  is  the  cost  of  18  tons,  17  cwt.  coal  @  $4  per  ton? 

17X5  =  85         18.85X4  =  75.40.     Ans.  $75.40. 

2.  What  is  the  cost  of  35  tons,  15  cwt.  hay  at  $12  per  ton? 

3.  What  is  the  cost  of  48  tons,  17  cwt.  coal,  at  $6.50  per 
ton? 

72.  To  find  the  value  of  shillings  and  pence  in  the  deci- 
mals of  a  pound  sterling. 

Rule. — Multiply  the  shillings  by  5,  and  call  the  product 
hundredths. 

Multiply  the  pence  by  4&,  and  call  the  product  thousandths. 
The  sum  of  these  two  values  icill  be  the  decimal  required. 


44  SPECIAL    CONTRACTIONS. 

EXAMPLES. 

1.  Reduce  12s.  6d.  to  the  decimal  of  a  pound. 

12  X  5    =.60 
6X41-  .025 

.625 

2.  Reduce  £187  13s.  3d.  to  the  decimal  of  a  pound. 

13X5   =-65 
3  X  4*  =  .0125 

.6625        Ans.  £187.6625 

73.  To  change  aunes  to  yards. 

Note. — An  aune  is  a  French  measure,  equal  to  1£  yards. 

Rule. — Annex  a  cipher,  and  divide  by  8. 

EXAMPLES. 

1.  In  484  aunes,  how  many  yards? 

4840  -f-  8  =  605  Ans. 

2.  In  3848  aunes,  how  many  yards?   In  1265?    In  1847? 

Note. — ]ls=|,  or  lf.  This  rule  can  easily  be  applied  to  nu- 
merous other  calculations.  The  contents  of  boards  \\  inches  thick, 
&c,  may  be  computed  in  this  manner;  the  selling  price  of  goods  in 
order  to  gain  25$  on  the  cost;   and  others. 

3.  What  is  the  selling  price  of  goods,  which  cost  64  cents 
per  yard,  to  gain  25%  ? 

640  -r-  8  =  80  64 

16  =  25%  of  64 

•    80 

74.  To  find  how  many  gallons  of  linseed  oil  in  a  given 
number  of  pounds,  at  7£  lbs.  per  gallon. 

Rule. — Add  one-third  of  the  number  of  pounds  to  itself  and 
point  off  one  decimal. 

EXAMPLES. 

1.  How  many  gallons  in  675  lbs.  ? 

675 

225  =  |  of  675 

90.0  Ans   90  gals 

2.  In  1846  lbs.  how  many  gallons  ?  in  675,  in  339  lbs.  ? 


PROPORTION.  45 

PROPORTION. 

75.  Katio  is  the  relative  magnitude  of  two  numbers  oi 
Ihe  same  kind,  and  is  found  by  dividing  one  by  the  other: 
thus,  the  ratio  of  3  to  12  is  4. 

76.  A  ratio  is  denoted  by  two  dots  similar  to  a  colon  :  thus, 
5  :  15  expresses  the  ratio  of  5  to  15,  and  is  read,  As  5  is  to  15. 

77.  It  may  also  be  written  in  the  form  of  a  fraction :  thus, 
L6  expresses  the  relation  of  4  to  16. 

78.  The  two  numbers  compared  are  called  the  terms  of 
the  ratiD,  the  first  being  the  divisor,  and  the  other  the  di- 
vidend. 

79.  The  first  term  is  called  the  antecedent,  and  the  last  the 
consequent. 

80.  The  terms  of  a  ratio  must  be  of  the  same  kind,  or 
such  as  may  be  reduced  to  the  same  denomination.  We 
cannot  compare  3  yds.  with  6  dollars,  but  we  can  compare 
3  yds.  with  5  feet,  because  we  can  reduce  yards  to  feet,  and 
say,  As  15  feet  are  to  5  feet. 

81.  Multiplying  the  consequent,  or  dividing  the  antecedent, 
multiplies  the  ratio. 

82.  Dividing  the  consequent,  or  multiplying  the  antecedent, 
divides  the  ratio. 

83.  Multiplying  or  dividing  both  antecedent  and  conse- 
quent does  not  alter  the  ratio.    (See  Cancellation,  Art.  20.) 

84.  Proportion  is  an  equality  of  ratios. 

Thus,  2  :  4  :  :  10  :  20  expresses  that  the  ratio  between  2 
and  4  is  the  same  as  between  10  and  20,  and  is  read,  As  2  is 
to  4,  so  is  10  to  20. 

The  first  and  fourth  terms  are  called  the  extremes;  the 
second  and  third,  the  means. 

85.  In  every  proportion  the  product  of  the  means  equals 
the  product  of  the  extremes. 

From  this  principle,  having  three  terms  of  a  proportion, 
we  are  ei  abled  to  find  the  fourth. 


46  PROPORTION. 

SIMPLE  PROPORTION,  OR,  RULE  OF  THREE. 

86.  A  Simple  Proportion  is  expressed  by  an  equality  of 
two  ratios,  and  consists  of  four  terms.  When  three  of  the 
members  of  a  proportion  are  given,  two  of  them  must  be  of 
the  same  kind,  and  the  other  must  be  of  the  same  kind  as  the 
fourth  term,  or  answer. 

87.  For  finding  the  fourth  term,  we  have  the  following 
Rule. — Place  the  given  number  which  is  of  the  same  kind 

as  the  required  answer,  as  the  third  term. 

Then,  if  from  the  nature  of  the  question  the  number  sought 
should  be  larger  than  the  third  term,  place  the  greater  of  the 
two  remaining  terms  for  the  second  term,  and  the  less  for  the 
first',  but  if  the  number  sought  should  be  less  than  the  third 
term,  place  the  less  of  the  two  remaining  numbers  for  the  second, 
and  the  greater  for  the  first. 

Reduce,  if  necessary,  the  first  and  second  terms  to  the  same 
denomination,  and  if  the  third  term  is  a  compound  number, 
reduce  it  to  the  lowest  term  mentioned  in  it. 

Then  multiply  the  second  and  third  terms  together,  and 
divide  the  product  by  the  first  term:  the  quotient  will  be  the 
fourth  term,  or  answer. 

EXAMPLES. 

1.  If  25  barrels  of  flour  cost  $165,  what  will  35  barrels 
cost? 

25  :  35  : :  165 
35 


25)5775 

231   .  Ans.  $231. 

Since  dollars  are  of  the  same  kind  as  the  answer  sought,  we  place 
$165  as  the  third  term.  Then,  as  35  barrels  will  cost  more  than  25 
barrels,  we  place  35,  the  larger  number,  for  the  second  term,  and  25, 
the  smaller,  for  the  first. 

By  Analysis. — If  25  barrels  cost  $165,  one  barrel  will  cost  $6.60, 
and  35  barrels  will  cost  35  times  $6.60  ==  $231. 


PROPORTION.  47 

2.  If  7  yards  of  broadcloth  cost  $24.50,  how  much  will 
12  yards  cost  at  the  same  rate? 

3.  If  18  bushels  of  wheat  cost  $27,  what  will  50  bushels 
cost  ? 

4.  What  will  27  yards  of  cloth  cost,  if  48  yards  cost  $36? 

5.  What  will  100  shares  of  railroad  stock  cost,  if  175 
shares  can  be  bought  for  $125? 

6.  If  12  men  build  16  rods  of  a  wall  in  a  day,  how  many 
rods  will  9  men  build? 

7.  How  much  will  14  yds.  3  qrs.  of  cloth  cost,  at  the  rate 
of  10  yds.  1  qr.  for  $20? 

8.  What  will  22  gals.  2  qts.  of  wine  cost,  at  the  rate  of 
$15.50  for  6  gals.  1  qt.  1  pt.  ? 

9.  If  §  of  an  acre  cost  $320.25,  what  will  9  of  an  acre 
cost,  at  the  same  rate? 

COMPOUND   PROPORTION. 

88.  A  Compound  Proportion  is  one  which  involves 
two  or  more  simple  ones. 

89.  Every  example  in  Compound  Proportion  can  be  solved 
by  two  or  more  simple  proportions. 

90.  All  the  terms  of  a  compound  proportion  appear  in 
couplets,  except  one,  which  is  always  of  the  same  kind  as  the 
answer  sought. 

Rule. — 1.  Write  the  number  which  is  of  the  same  kind  as 
the  ansicer  sought,  for  the  third  term. 

2.  Arrange  the  tivo  terms  of  each  ratio  separately,  as  in 
simple  proportion. 

3.  Multiply  the  continued  product  of  the  second  terms  by 
the  third  term,  and  divide  the  result  by  the  continued  pro- 
duct of  the  first  terms. 

Note. — The  work  may  frequently  be  much  abridged  by  cancellation. 

EXAMPLES. 

1.  If  12  men  in  30  days  earn  $270,  how  many  dollars  will 
18  men  earn  in  36  days? 


48 


DISTRIBUTIVE    PROPORTION. 


12  :  18::  270 
30  :  36 

360  :  648  : :  270 
648 


360)174960($486    Ans. 
1440 

3096 

2880 


2160 
2160 


$•270  is  the  same  kind 
as  the  required  term. 
18  men  will  earn  more 
than  12  men,  and  more 
can  be  earned  in  3G  days 
than  in  30.  12X30  = 
S60.     18  X  36  =  648. 


Or,  by  cancellation, 


9 


;2:18 

mn 

3         3X9X!8  =  486,  Ans. 

By  Analysis. — If  12  men  earn  $270  in  30  days,  1  man  will  earn 
fa  of  $270  92  $22.50  in  30  days,  and  ft  of  $22.50  =  75^  in  1  day. 

If  1  man  earn  75^  in  1  day,  18  men  will  earn  18  times  75/,  or 
$13.50,  in  1  day,  and  36  times  $13.50  =  $486  in  36  days. 


men.  men. 


By  Simple  Proportion.— 12  :  18  :  :  270  :  405. 
days.  days. 
30  :  36  :  :  405  :  486. 


Ans.  $486. 


DISTRIBUTIVE   PROPORTION. 

91.  Distributive  Proportion  is  the  method  of  dividing 
a  number,  or  quantity,  into  parts  which  are  proportional  to 
given  numbers. 

Note. —  This  rule  is  also  called  Fellowship,  or  Partnership,  the  Rule 
of  Proportional  Division,  and  Partitive  Proportion.  For  Partnership,  see 
paye  174. 

92.  The  principle  of  this  rule  can  be  easily  applied  to  the 
solution  of  numerous  questions  of  a  practical  nature,  such  as 
determining  the  profits  and  losses  of  partners  in  trade,  ap- 
portioning the  shares  of  participators  in  prize-money,  finding 
the  relative  proportion  of  ingredients  requisite  to  form  a 
given  quantity  of  a  compound,  apportioning  taxes,  school- 
rates,  averaging,  &c. 


DISTRIBUTIVE    PROPORTION  49 

liULE. — Multiply  the  whole  quantity  to  be  divided  by  each 

proportional  number,  and  divide  each  product  by  the  sum  of 

the  proportional  numbers.     Or,  use  the  following  formula: — 

Sum  of  the  pro-  )   _  Quantity  or  num-  )  (  Each  propor- 

portional  numbers  )     bcr  to  be  divided    j  I  tional  number. 

EXAMPLES. 

1.  Divide  300  into  two  parts  which  shall  be  to  each  other 
as  3  to  9. 

3  +  9  =  12 
12  :  300  :  :  3  :    75  the  less  number. 
12  :  300  :  :  9  :  225  the  greater  number. 

300  proof. 

2.  Divide  $600  proportionately  among  4  men  whose  shares 
are  to  each  other  as  3,  4,  5,  6. 

3_|_4  +  5-f-6  =  18 
18  :  600  :  :  3  :  100    first  man's  share. 
18  :  GOO  :  :  4  :  1331-  seCond  " 
18  :  600  :  :  5  :  166f  third     » 
18  :  600  :  :  6  :  200    fourth   " 

3.  Divide  450  shares  of  railroad  stock  among  3  persons 
in  proportion  to  the  number  of  shares  already  held  by  them. 
A.  owns  400,  B.  200,  C.  300.  What  number  will  each  re- 
ceive? 

4.  A.,  B.,  C,  and  D.  invest  $50,000  in  a  shipment  to  Cuba. 
A.  invests  $15,000,  B.  invests  $20,000,  C.  invests  $10,000, 
and  D.  invests  $5000.  They  gain  $30,000.  What  is  each 
partner's  share  of  the  profits  ? 

5.  A.,  B.,  and  C.  do  a  piece  of  work  for  $140.  A.  does  A, 
B    -\y,  and  C.  A.     How  much  ought  each  to  receive? 

6.  Gunpowder  is  composed  of  76  parts  of  nitrate  of  potass, 
14  of  carbon,  and  10  of  sulphur.  How  much  of  each  in- 
gredient will  be  required  to  make  12  cwt.  gunpowder  ? 

Ans.  9  cwt.  13^i  lbs.  nitrate  of  potass. 
1  cwt.  2  qrs.  2034^  lbs.  carbon. 
1  cwt.  22J§  lbs/sulphur. 

7.  A.,  B.,  and  C.  engaged  in  trade,  and  agreed  to  share  the 
gains  and  losses  in  proportion  to  the  amount  each  invested, 
A.  invested  $5000,  B.  $8000,  C.  $7000.  They  gained  $6600 
What  wai  each  man's  share  ? 

D  6 


50  DISTRIBUTIVE    PROPORTION. 


COMPOUND   DISTRIBUTIVE   PROPORTION,  OR, 
DOUBLE   FELLOWSHIP. 

93.  In  Compound  Distributive  Proportion,  each  share  is 
affected  by  different  periods  of  time,  or  by  different  quantities 
or  rates. 

Rule. — Multiply  each  share  by  the  time,  or  quantity,  or 
rate,  by  which  it  is  affected,  and  the  products  will  be  the  pro- 
portional numbers.  Then  proceed  as  in  Simple  Distributive 
Proportion. 

EXAMPLES. 

1.  A.  and  B.  entered  into  partnership.  A.  invested  $100  for 
2  months,  B.  invested  $200  for  3  months.  They  agreed  to 
divide  the  gains  and  losses  in  proportion  to  the  capital  of  each 
and  the  time  for  which  it  was  invested.  Their  gains  were 
$280.     How  much  was  the  share  of  each? 

$100  X  2  mos.  =  200  for  1  month. 
$200  X  3     "     =  600   "    1      " 

800  :  280  :  :  200  :    70,  A.'s  share. 
800  :  280  :  :  600  :  210,  B.'s  share. 

2.  If  an  iron  enameller  manufactures  a  mixture  worth 
$100,  which  he  applies  with  equal  thickness  to  the  following 
lots,  what  does  the  mixture  on  each  of  the  plates  cost? 

14  plates,    8  in.  wide,  10  in.  long.     8x10=    80  sq.  in.  each. 
10     u      10  "      "     20"     "       10X20  =  200"    "     " 
20     "      15  "      "     20  "      "      15  X  20  =  300  "    "     " 


1 4  plates  each  80  sq.  in.  =  1120  sq.  in. 
10  "    "  200  "  "  =2000  "  « 
20  "    "  30u  "  "  =  6000  "  " 


9120  :  100  :  :  1120  :  12.27+ 
9120  :  100  :  :  2000  :  21.92+ 
9120  :  100  ::6000  :  65.78+ 


9120 

$12.27,  the  cost  of  14  plates.  1  plate  costs  88  cts.  nearly. 
1  sq.  inch  costs  |§  or  lT\j  cts.  nearly. 

3.  A.,  B.,  and  C.  hired  a  pasture  for  $45.  A.  had  15  cows 
pastured  2  months,  B.  had  8  cows  pastured  3  months,  and  C. 
had  9  cows  pastured  4  months.  How  much  should  each 
pay? 


MEDIAL    PROPORTION.  51 

4.  If  4  oz.  gold  22  carats  fine  be  mixed  with  8  oz.  gold  18 
carats  finey  Low  much  fine  gold  will  there  be  in  6  oz.  of  the 
mixture? 

Note. —  The  fineness  of  gold  is  usually  expressed  by  saying  that  gold  it 
to  many  carat*  fine  ;  that  is,  that  so  many  parts  out  of  2£  are  pure  gold. 

4  oz.  X  If  =  H  oz-  fin3  Sold- 

Soz.xH^W"    "      " 

||  _[_  1^44  =  iff  e*  ?_95  the  quantity  of  fine  gold  in  12  oz. 
8  -f  4  =  12  ;  then,  12  oz.  :  2*  oz.  :  :  G  :  4§.     Ans.  if  oz. 

Or,  By  Analysis. — If  there  are  239  oz.  pure  gold  in  12  oz.  of  the 
mixture,  there  is  TV  of  2f  or  §§  oz.  in  1  oz.  of  the  mixture;  and  in 
6  oz.  there  are  6  times  -§§  ==  2^  or  4|-  oz. 

MEDIAL   PROPORTION,  OR   ALLIGATION. 

9<1.  Alligation  is  the  process  of  finding  the  value  of  a 
compound  or  mixture  of  articles  of  different  values,  or  of 
forming  a  compound  which  shall  have  a  given  value,  or  one 
in  which  the  articles  shall  be  in  a  given  proportion. 

95.  To  find  the  average  value  of  several  articles  when  the 
quantity  and  rate  are  given. 

Rule. — Multiply  each  quantity  by  its  rate,  and  divide  the 
sum  of  the  products  by  the  sum  of  the  quantities.  The  quo- 
tient will  be  the  average  value. 

EXAMPLES. 

1.  If  25  lbs.  of  tea  worth  60/  per  lb.  be  mixed  with  25 
lbs.  worth  30/  and  40  lbs.  worth  75/,  what  is  one  pound 
of  the  mixture  worth? 


OPERATION. 

25  lbs. 
25  " 
40  " 

@  60/  =  15.00 
"  36  =  9.00 
«  75  =30.00 

90  lbs.  are  worth  $54.00 
1  lb.  is  worth  $54  00  -=-  90  =  60/.    Ans. 


52  MEDIAL    PROPORTION. 

2.  If  I  mix  100  lbs.  sugar  worth  10/  per  lb.,  36  lbs. 
worth  15/  per  lb.,  80  lbs.  worth  12/  per  lb.,  and  40  lbs. 
worth  9/  per  lb.,  what  will  one  pound  of  the  mixture  be  worth  ? 

96.  To  find  what  quantities  of  ingredients  of  different 
Talues  will  form  a  compound  of  a  given  value. 

Rule. — Find  the  gain  or  loss  on  one  of  each  ingredient^ 
then  take  as  much  of  any  ingredient  as  will  make  the,  gain 
and  loss  equal.     Or, 

At  the  left  of  the  column  containing  the  rates,  write  the  mean 
rate.  Then  connect  each  rate  that  is  less  than  the  mean  rate 
with  one  that  is  greater,  and  write  the  difference  opposite  the 
rate  with  which  it  is  connected. 

If  more  than  one  difference  stand  opposite  to  any  number , 
add  the  differences  together. 

The  differences,  or  sums  of  difference,  written  opposite  any 
rate  will  denote  the  quantity  of  the  ingredient  to  be  taken  at 
that  rate. 

Note. — I,  If  any  article  is  of  the  mean  rate,  it  need  not  be  linked, 
as  it  is  of  the  average  value,  and  will  not  affect  the  rate. 

II.  Every  pair  of  numbers  joined,  forms  of  itself  a  compound  of 
the  right  proportions,  -whether  taken  separately,  or  in  connection 
with  others.  This  operation  only  gives  the  ratios  of  the  several  in- 
gredients. If  all  the  quantities  found,  be  multiplied  or  divided  by 
the  same  number,  they  may  be  increased  or  diminished  at  pleasure, 
without  affecting  the  proportion. 

III.  When  part,  or  all,  of  the  numbers  contain  fractions,  they 
may  be  reduced  to  a  common  denominator,  and  their  numerators 
used. 

IV.  A  variety  of  answers  may  be  obtained  by  linking  differently, 
all  of  which  will  be  correct. 


EXAMPLES. 

1.  In  what  proportion  must  a  grocer  mix  coffee  worth  15^, 
18/,  20/,  22/,  and  24/  per  pound,  that  the  mixture  may 
be  worth  21/  per  pound? 


MEDIAL    PROPORTION. 


53 


FIRST  OPERATION. 


By  selling  a;  21? 

1  lb.   worth    15/  I  gain  6/ 

1  "  «       18    "     "  3 

1  «         «       20   »     "  1 

Total  gain,  10 

1  lb.  worth      22/    I  lose  1/ 

1  «        "         24     "    «  3 

Total  loss,  4 


Tom  ake  the  gains  and  losses  equal, 
instead  of  1  lb.  he  can  take  6  lbs. 
at  22/,  or  2  lbs.  at  24/. 
Or  3  lbs.  at  15/  and  gain  18? 
3    »     "  18      "       "      9 
9   "     "  24      "    lose  27 


SECOND  OPERATION. 


21 


15— 
18— 
20 

22J 
24— 


—  1 

—  1 
-6  + 


3 
3 
1 
1 
9 

17 


Proof. 
3  lbs.  @  \b<P  = 


3 
1 
1 
9 

17 


18 
20 
22 
24 


45 

54 

20 

22 

2.16 


21/ =$3.57 


2.  If  a  grocer  wishes  to  mix  tea  worth  70/,  80/,  SI,  and 
$1.10  per  pound,  that  the  mixture  shall  be  worth  90/  per 
pound,  how  many  pounds  of  each  must  he  use  ? 

Ans. 

97.  To  find  what  quantity  of  each  of  the  other  ingredients 
must  be  used  to  make  a  compound  of  a  given  value,  wheD 
the  quantity  of  part,  and  the  value  of  all,  are  given. 

Rule. — Find  the  proportional  numbers  as  in  the  last  case, 
and  divide  the  given  quantity  by  its  proportional  number. 

Multiply  each  remaining  proportional  quantity  by  the  quo- 
tient  so  obtained,  and  the  several  products  will  be  the  required 
quantities. 


EXAMPLES. 


1.  How  many  pounds  of  sugar,  worth  8/,  12/,  and  24^ 
per  pound,  must  be  mixed  with  40  pounds  worth  20/,  that 
the  mixture  may  be  worth  22/  per  pound? 

5* 


54 


MEDIAL    PROPORTION. 


[24-UJM  +  lO-f 


OPERATION. 

2 

Then  2X20  = 

40 

@Sf  = 

3.20 

2 

2X20  = 

40 

"12  = 

4.80 

2 

2X20  = 

40 

"20  = 

8.00 

=  26 

26X20  = 

520 

"24  = 

124.80 

82 


Ans.  640  "22=$140.80 


40,  the  limited  quantity,  divided  by  2,  the  proportional  quantity  of 
sugar  at  20  cts.,  =  20,  the  ratio. 

2.  How  much  wine  worth  $1.25,  $1.30,  and  $1.40  per 
gallon  must  be  mixed  with  40  gallons  worth  $1  per  gallon, 
10  gallons  at  $1.20  per  gallon,  and  5  gallons  at  $1.70  per 
gallon,  that  the  mixture  may  be  worth  $1.35  per  gallon? 


1.35 


OPERATION. 

40  gals,  at  $1.      =40.00 

10    "      "     1.20  =  12.00 

5    "      "     1.70=    8.50 

55  60.50 

Average  price  per  gallon,  $1.10. 


1.10 — 

ar 

1.40 


UJ25 


5 
5 
5 

25 -f  10  +  5  =  40 

55 


55,  the  limited  number  of  gallons,  which  average  $1.10,  divided 

by  5,  the  proportional  quantity,  gives  11  for  the  ratio.     Then 

5XH=    55  at  $1.10  =  $60.50 

5X11=    55  "     1.25=    68.75 

5X11=    55  «     1.30=    71.50 

40  X  11  =  440  "     1.40  =  616.00 

605  "  $1.35=  816.75 

Ans.  605  gals. 

98.  To  find  the  quantity  required  of  each  ingredient  to 
make  a  compound  of  a  given  quantity,  when  the  value  of  the 
ingredients  is  given. 

Rule. — Find  the  proportional  parts  as  before,  and  divide 
the  quantity  of  the  mixture  by  the  sum  of  the  proportional 
parts. 

Multiply  each  quantity  by  the  quotient  thus  obtained,  a\d 
the  several  products  will  be  the  required  quantu'es  of  each. 


MEDIAL    PROPORTION.  55 


EXAMPLES. 

1.  A  merchant  received  an  order  for  460  lbs.  of  sugar,  at 
15^  per  pound.  He  has  in  his  store  sugars  worth  10^,  12^, 
20^,  and  25^  per  pound.  How  much  shall  he  take  of  each 
to  fill  the  order? 

OPERATION, 
f  10 1  10  10  X  20  =  200  at  1G*  =$20.00 


16 


I  12-i  15  5X20  =  100  "  12   =   12.00 

|  20J       3  3X20=    60  "20  =   12.00 

[25 '    5  5X20  =  100  "25   =  25.00 


23)460  460  "  15  =$69.00 

20,  average  quantity. 
Ans.  200  lbs.  at  10/,  100  lbs.  at  12/,  60  lbs.  at  20?,  100  lbs.  at  25/. 

99.  If  a  quantity  is  at  the  average  rate,  it  may  be  disregarded 
until  the  other  quantities  are  found,  and  then  enough  of  that  quan- 
tity taken  to  make  the  whole  equal  to  the  required  compound. 

100.  As  each  combination  is  perfect  in  itself,  if  the  result  is  in 
mixed  numbers,  when  whole  numbers  are  required,  we  may  select 
some  multiple  of  the  pairs,  and  thus  make  up  the  quantity  sought. 

MISCELLANEOUS    EXAMPLES. 

1.  What  is  the  fineness  of  a  composition  consisting  of 
2  lb.  8  oz.  gold  18  carats  fine,  3  lb.  6  oz.  14  carats  fine,  1  lb. 
6  oz.  22  carats  fine,  and  1  lb.  6  oz.  alloy  ? 

2.  A  cask  contains  30  gallons  wine  worth  $3  per  gallon. 
What  quantity  will  the  cask  contain  after  pouring  in  water 
until  the  contents  are  worth  but  $2.50  per  gallon  ? 

3.  A  farmer  wishes  to  mix  rye  at  70  cts.  per  bushel  with 
corn  at  90  cts.  and  oats  at  50  cts.  What  quantity  of  each 
must  he  take  to  make  the  mixture  worth  75  cts.  per  bushel  ? 

4.  A  merchant  wishes  to  fill  a  barrel  which  will  hold  200 
lbs.  with  sugar  worth  respectively  8  cts.,  12  cts.,  and  14  cts. 
per  lb.,  so  that  the  mixture  may  be  worth  13  cts.  How  much 
of  each  must  he  take  ? 

5.  A  man  bought  50  bbls.  flour  for  $500, — some  at  $8  per 
bbl.,  some  at  $9  per  bbl.,  and  some  at  $12  per  bbl.  How 
many  of  each  kind  did  he  purchase  ? 


56  PERCENTAGE. 

PERCENTAGE. 

101.  Percentage  is  a  method  of  computing  by  means  of  a 
fraction  whose  denominator  is  100. 

The  term  per  cent,  is  an  abbreviation  of  the  Latin  per 
centum,  which  signifies  by  the  hundred. 

102.  The  Rate  per  cent,  is  the  number  of  hundredths. 
Thus,  8  per  cent,  is  eight-hundredths,  and  may  be  expressed 
Tg„  or  .08,  or  8%.     |%  =  J  of  rf,  «^,  =  .00125. 

Per  cent,  is  simply  the  proportion  of  a  hundred,  and  is  not  any 
of  the  denominations  of  Federal  money  :  10  per  cent,  is  not  10  cents, 
nor  10  dollars,  but  T^;  10  per  cent,  of  $50  =  $5;  10  per  cent,  of 
85bbls.=8£bbls. 

Percentage  is  used  in  most  commercial  calculations,  such  as  In- 
terest, Commission,  Insurance,  Profit  and  Loss,  &c. 

103.  Case  I. — To  find  the  percentage  of  any  number  or 
quantity,  the  rate  per  cent,  being  given. 

Rule. — Multiply  the  given  number  by  the  rate  per  cent., 
and  divide  by  100  (i.e.  point  off  two  decimals). 

EXAMPLES. 

1.  What  is  8%  of  $640? 

640  X  8  =  5120.  Ans.  $51.20 

8  %  of  640  =  jfa  of  640  =  *j$>  =  51.20. 

The  percentage  on  sterling  money  and  denominate  numbers  is 
found  after  reducing  the  numbers  to  the  lowest  denomination  given, 
or  to  the  decimal  of  the  highest,  and  then  proceeding  as  in  simple 
numbers.     (See  Decimals  of  Denominate  Numbers,  p.  28.) 

2.  What  is  6  per  cent,  of  £15  9s.  6d.  ? 

By  Art.  43.  9s.  6d  =  £.475 

15.475X6  =.92850 
20 

18.57000 
12 

6.84000         Ans.  18s.  6T%%d 

£15  9s.  6d.  =  3714,/.         3714  X  6  =  22284 
222.84J.  =  18*.  6ffod. 


PERCENTAGE.  57 

104.  Case  II. — To  find  what  rate  per  cent,  one  number  is 
of  another. 

Rule. — Annex  two  ciphers  to  the  percentage,  and  divide 
by  the  number  on  which  the  percentage  is  reckoned. 
Example. — What  per  cent,  of  40  is  8  ? 
800 --40  =  20.         8  =  4%  of  40;  ,%  of  100  =  20. 

2.  A  student  at  an  examination  in  which  50  questions  were 
asked  answered  45  correctly.     What  per  cent,  did  he  answer  ? 

105.  Case  III. — To  find  a  number  when  the  value  of  a 
certain  per  cent,  of  it  is  known. 

Rule. — Annex  two  ciphers  to  the  percentage,  and  divide  by 
the  rate  per  cent. 

Example. — 42  is  25%  of  what  number.? 
4200  h- 25  =  168. 

2.  A  man  sold  a  house,  and  gained  $2850,  which  was  12£ 
per  cent,  of  what  he  received.    How  much  did  he  sell  it  for  ? 

106.  Case  IV. — To  find  what  number  is  a  certain  per  cent. 
more  or  less  than  a  given  number. 

Rule. — When  the  given  number  is  more  than  the  required 
number,  annex  two  ciphers  to  the  given  number,  and  divide  by 
100  PLUS  the  rate  per  cent. 

When  the  given  number  is  less  than  the  required  number, 
annex  two  ciphers  to  the  given  number,  and  divide  by  100  LESS 
the  rate  per  cent. 


EXAMPLES. 

1.  What  amount  of  gold,  at  a  premium  of  25  per  cent., 
can  I  buy  for  $720  in  currency  ? 

100  +  25  =  125  j     72000  -f- 125  =  576.         Ans.  $576. 

2.  Purchased  merchandise  and  sold  it  for  $1680,  thereby 
losing  20  per  cent.     What  did  the  merchandise  cost  ? 

100  —  20  =  80 ;     168000  -s-  80  =  2100.        Ans.  $2100 


58  PERCENTAGE. 


EXAMPLES   IN   PERCENTAGE. 

What  is  6  %  of  $26.45  X 

26.45  X  6  =  158.70.  Ans.  $1.53TV 

Note. — The  figures  on  the  left,  after  pointing  off,  are  of  the  lowest  de- 
nomination in  the  number  multiplied.  If  there  are  cents  in  the  given 
number,  two  more  places  must  be  pointed  off  for  cents. 

1.  If  a  merchant  who  buys  goods  on  6  months'  credit  is 
allowed  a  deduction  of  5  °f0  for  paying  his  bill  within  30 
days,  what  can  he  save  on  a  bill  of  $560  ?  How  much  on 
$3650? 

2.  If  a  man  fails  to  pay  his  water  rent  until  he  is  ch urged 
12%  for  delay,  how  much  will  he  lose  if  his  water  rent 
is  $18.75? 

3.  If  1  %  per  month,  counting  from  the  time  of  payment,  is 
allowed  on  all  taxes  paid  before  July  1st,  and  1  %  per  month 
charged  on  all  taxes  remaining  unpaid  thereafter,  how  much 
more  does  A.  pay  than  B.,  if  B.  pays  his  taxes  Feb.  1st,  and  A. 
pays  his  taxes  Nov.  1st,  their  tax-bills  being  each  $180? 

4.  A  merchant  owes  $6500,  and  his  property  is  worth  only 
$5425.     What  per  cent,  of  his  debt  can  he  pay? 

5.  A  man  shipped  3800  bbls.  of  flour  to  England,  and 
during  a  storm  19  bbls.  were  thrown  overboard.  What 
per  cent,  was  lost? 

6.  If  a  man  pays  an  income-tax  of  $177.50,  the  rate  being 
5%,  what  is  the  amount  of  his  income  above  the  deduc- 
tion allowed  by  the  government? 

7.  If  I  have  $374.50  in  currency,  how  much  gold  can  I 
buy  when  it  sells  at  a  premium  of  7%  ? 

8.  The  population  of  a  certain  village  increased  in  5  years 
from  6*000  to  7800.  What  was  the  average  rate  of  increase 
per  year  ? 

9.  What  is  the  difference  to  a  salesman  between  selling  a 
bill  of  $1000,  on  which  there  is  a  profit  of  $100  of  which  lie 
receives  J,  and  selling  the  same  amount  for  a  commission  of 
1 J  per  cent.  ?  What  will  be  the  difference  to  the  firm  if  the 
goods  are  sold  for  $950  instead  of  $1000,  and  what  the 
difference  to  the  salesman  if  sold  at  l£%  commission? 

10.  A  merchant  sold  a  lot  of  cloth  at  $3  per  yard,  and 
thereby  gained  20  per  cent.  What  per  cent,  would  he  have 
gnincd  if  he  had  sold  the  cloth  at  $3.75  per  yard? 


KATES    OF    COMMISSION.  59 


COMMISSION,  BROKERAGE,  &c. 

107.  Commission  is  the  charge  made  by  Factors,  or  Com- 
mission Merchants,  Brokers,  and  other  agents,  for  buying  and 
selling  merchandise,  stocks,  &c,  making  collections,  or  trans- 
acting any  other  business  for  another.  It  is  usually  calculated 
at  so  much  per  cent,  on  the  amount  of  money  received  or  ex- 
pended. 

108.  A  Broker  is  one  who  makes  a  bargain  for  another, 
but  who  has  not  the  goods  in  his  possession. 

109.  Guarantee  is  the  charge  made  for  assuming  the 
risk  of  loss  from  non-payment  by  the  purchaser. 

110.  The  Consignment  is  the  quantity  of  goods  sent  to  be 
sold ;  the  person  who  sends  them  is  called"  the  Consignor;  the 
commission  merchant,  or  person  to  whom  the  goods  are  sent, 
is  called  the  Consignee.     (See  Account  Sales.) 

111.  The  excess  of  the  amount  of  sales  or  collections  over 
the  charges,  is  called  the  Net  Proceeds. 

112.  Stocks  are  usually  bought  and  sold  at  a  certain  per 
cent,  on  their  par  value,  or  at  so  much  per  share. 

(See  The  Stock  Exchange.) 

113.  Eates  of  Commission  adopted  by  Philadelphia  Merchants. 
The  charges  for  selling  flour,  grain,  seeds,  and   other  produce 

shall  be  2£  per  cent,  on  the  gross  amount  of  sales,  and  the  incidental 
expenses,  handling,  cooperage,  measuring,  fire  insurance,  &c.  shall 
be  charged  in  addition. 

That,  in  order  to  secure  uniformity,  these  incidental  expenses 
shall  be  as  follows,  viz. : — 

On  flour,  not  less  than  3  cents  per  barrel  for  labor,  3  cents  per 
barrel  for  inspection  and  cooperage,  3  cents  per  barrel  for  storage. 
(See  Storage,  page  64.) 

On  wheat,  when  received  by  rail,  not  less  than  1  cent  per  bushel 
for  measuring,  storage,  and  labor. 

All  other  grain,  when  received  by  rail,  1|  cents  per  bushel  for 
measuring,  storage,  and  labor. 


60 


RATES    OF    COMMISSION. 


On  wheat  and  other  grain,  when  received  afloat,  11  cents  per 
bushel  for  measuring,  and  actual  expenses  incurred  when  stored, 
which  shall  not  be  less  than  the  charge  made  by  rail. 

On  seeds,  dried  fruit,  butter,  dressed  hogs,  feed  and  meal  in  bags, 
and  other  miscellaneous  produce,  2|  per  cent,  commission,  and  1 
per  cent,  for  storage,  measuring,  &c. 

A  charge  of  not  less  than  ^  of  1  per  cent,  for  fire  insurance  shall 
be  added  in  all  cases,  except  where  sales  are  made  afloat. 

After  the  first  month  shall  have  expired,  the  charge  for  storage 
shall  not  be  less  than  3  cents  per  barrel  per  month  on  flour,  and  \ 
cent  per  bushel  on  grain,  with  l  of  1  per  cent,  per  month  fire  insurance. 

Hules. — In  all  cases  where  acceptances  are  made  on  produce,  in 
anticipation  of  sales,  the  commission  merchant  shall  be  at  liberty  to 
sell,  in  order  to  meet  the  drafts  at  maturity. 

Delivery  will  be  accomplished  on  the  part  of  the  seller  when  he 
places  at  the  door  of  his  warehouse  flour  or  meal  in  a  position  to 
be  removed  by  the  purchaser's  porters  or  stevedores ;  and  grain, 
when  pointed  out  to  the  purchaser  or  his  agent. 

The  expenses  of  towing  and  wharfage  of  boats  and  vessels  shall 
be  paid  by  the  purchaser  of  the  cargo,  when  moved  for  his  accommo- 
dation. 


RECEIVING    COMMISSION. 


Cents. 


Bacon 50 

3ark t 50 

^ieef 50 

Butter  and  Lard..... 50 

Clay 50 

Clover-seed 2 

Coal 10 

Corn  Meal 3 

do 12 

Dye  Woods 25 

Flour 3 

Grain,  all  kinds 1 

Hemp 6 

Hoop  Poles 20 

Indigo 8 

do 4 

Iron 20 

Leather ..$1.00 

Lumber 20 

Nails 20 

Plaster 10 

Seeds 1 


<$  ton. 


bushel. 

a 

barrel. 

hhd. 

ton. 

barrel. 

bushel. 

bale. 

1000. 

chest. 

ceroon. 

ton. 

ton. 

1000  ft. 

ton. 

ton. 

bushel. 


Cents. 

Shingles 20^1000 

Shot 6^  keg 

Soap,  foreign 4  box 

Staves 20  1000 

Steel,    in     bars     or 

bundles 20  ton. 

Sugar 15  hhd. 

do 5  barrel. 

do H  bag. 

Tallow 25'  hhd. 

Tea 4  chest. 

Tin,  block 15  ton. 

Tobacco 25  hhd. 

do 6  bale. 

do.      manufac 2  box. 

Whisky 25  hhd. 

do 6|  barrel 

Whiting 25  hhd. 

Wine 25  pipe. 

do C>]  cask. 

Wood,  dye 30  ton. 

Wool 12£  sack. 


RATES    OF    COMMISSION.  61 


COMMISSIONS    FOR    PURCHASING. 


On  produce  generally,  one-half  the  charges  made  for  selling,  and 
2\  per  cent,  on  all  other  goods. 


COMMISSION    FOR    RECEIVING   AND    SHIPPING    HENCE    TO    OTHER    PORTS 

Cents. 
Grain,  all  kinds 1  ^bushel. 


Cents. 

Flour  and  Meal 6£  ^  barrel. 

Corn  Meal 25         hhd. 

Flour  and  Meal 3i       hf.bbl. 


Peas  and  Beans 1 

Seeds,  all  kinds. 


COMMISSION    FOR    LOADING    MERCHANDISE    IN    CARS    AND    BOATS. 

On  store  goods  and  merchandise  generally,  75  cents  per  ton. 

LEAKAGE    AND    BREAKAGE. 

On  spirits,  2  per  cent. ;  ale,  beer,  and  porter,  in  bottles,  10  per 
cant. ;  all  other  liquors,  in  bottles,  5  per  cent. 

EXAMPLES   IN    COMMISSION. 

1.  Received  $245  for  selling  goods  at  a,  commission  of  5%. 
How  much  did  I  sell  ? 

245  X  100  =  24500 

24500  -s~  5  =  4900.     Ans.  $4900. 

2.  A  broker  purchased  for  me  50  shares  of  railroad  stock, 
of  the  par  value  of  $50  per  share.  His  charge  was  |%. 
How  much  did  I  pay  him  ? 

3.  A  country  trader  buys  through  a  commission  merchant 
an  invoice  of  goods  for  $2550.  The  commission  merchant 
charges  22  %  for  buying.  How  much  must  the  trader  remit 
to  pay  for  the  goods  and  commission  ? 

4.  Thomas  &  Sons  sold  for  me,  at  auction,  a  lot  of  goods  to 
the  amount  of  $14,500.  Their  charges  are  as  follows: — Com- 
mission, 22%;  guarantee,  22  %  ;  advertising,  $22.50;  dray- 
age,  labor,  and  storage,  $32.50.     How  much  is  due  me  ? 

5.  A  house  was  sold  for  $2400,  which  was  80%  of  its  cost. 
What  was  the  cost  ? 

6.  Paid  a  broker  $24  for  investing  money  in  bank  stock 
for  me,  selling  at  par  at  a  commission  of  J%.  How  much 
did  he  invest  ? 

6 


62  COMMISSION. 

7.  Paid  a  merchant  3%  commission,  and  received  $3880 
as  net  proceeds.     What  was  the  amount  of  «ales  ? 

8.  What  number  diminished  by  3%  of  itself  is  equal 
to  776  ? 

9.  Received,  as  net  proceeds  of  a  consignment,  $760,  after 
paying  22  %  commission  for  selling.  What  was  the  amount 
of  sales  ? 

10.  Received  $224  dividend  on  50  shares  railroad  stock, 
which  cost  $3200.     What  was  the  rate  per  cent.  ? 

11.  An  agent  sold  property  for  $18,240,  and  received 
$121.60.     What  was  the  rate  of  commission? 

12.  If  I  pay  a  commission  merchant  $125  for  commission 
and  guarantee  on  a  sale  of  $2500,  what  rate  does  he 
receive  ? 

13.  A  commission  merchant  wishes  to  buy  exchange  with 
the  net  proceeds  of  a  sale  amounting  to  $714.  The  rate  of 
exchang3  is  2%.     How  large  a  bill  can  he  buy?     Ans.  $700. 

14.  A  Cuban  merchant  wishes  to  draw  on  New  York  for  an 
amount  which  will  leave  hini  the  sum  of  $6141.39,  after  pay- 
ing a  premium  of  42  %  for  negotiating  and  exchange.  For 
how  much  must  he  draw  ?  Ans.  $6430.77. 

15.  A  merchant  received  $525,  with  which  to  buy  goods. 
He  is  to  receive  a  commission  of  22%  on  the  amount  of  pur- 
chase, for  buying.  How  much  is  his  commission,  and  what 
is  the  amount  of  purchases  ? 

16.  I  have  remitted  $3600  to  my  agent  in  Montpelier,  with 
which  to  buy  wool,  first  deducting  his  commission  of  3%  for 
purchasing.  How  much  will  he  expend  for  wool?  How 
much  will  be  his  commission  ? 

17.  Invested  in  wheat  the  proceeds  of  a  consignment  of 
flour,  less  my  commission  on  both  at  3%,  which  amounted  to 
$60.  What  did  I  sell  the  flour  for,  and  what  did  I  pay  for 
the  wheat?  Ans.  Flour,  $1030,  Wheat,  $970. 

100  3 

TITO"        TSI5" 

fooof  wheat  +  T|7com. 

Then  -^  of  the  flour  =  |g$  of  the  wheat,  and  ^-e\  of  the  flour 
equalled  the  wheat,  and  jfa  of  the  flour  equalled  the  commission, 
$60. 

18.  A  commission  merchant  sold  goods  for  $6262,  and  re- 
ceived $165,  which  included  a  charge  for  freight  of  $8.45. 
Wh:it  rate  of  commission  did  hereceive? 


COMMISSION.  63 

19.  Sold  lumber  on  commission  at  5%.  Invested  net  pro- 
ceeds in  dry  goods  at  2%  commission.  My  whole  commission 
was  $70.  What  was  the  value  of  the  lumber  and  the  dry 
goods  ?  Ans.  Lumber,  $1020,  Dry  goods,  $950. 

Suggestion. — Net  proceeds  of  lumber  equal.  y9^,  or  95%.  Com- 
mission on  dry  goods  equals  T^T  of  95%  =  1|£%.  1|^4-5  =  6||. 
Then,  if  6§f  %  equals  $70,  5%  e"qu<^s  $51. 

20.  J.  B.  Myers  &  Co.  sell  for  me  a  quantity  of  dry  goods 
on  commission  at  6%.  How  much  must  be  sold  that  my 
agent  can  buy  flour  with  the  proceeds  to  the  value  of  $5400, 
after  retaining  his  commission,  for  buying,  of  22  %  ? 

Ans. 

21.  Sold  goods  at  22%  commission,  which  I  invested  in 
sugars,  and  sold  them  at  a  profit  of  15  per  cent.,  realizing  a 
gain  of  $240.  How  much  commission  did  I  receive,  and 
how  much  did  the  goods  sell  for  ? 

22.  A  merchant  bought  an  invoice  of  grain,  which,  in- 
cluding 1|  <f0  commission,  cost  $5050. 62£r,  and  paid  $15.25 
for  freight.  He  sold  the  grain  at  a  profit  of  15%  on  its  first 
cost,  and  invested  tin?  proceeds  in  sugar,  which  he  sold  at  5% 
profit,  receiving  a  n<u.»»  due  in  48  days,  including  grace.  This 
note  he  had  discounted  at  6%,  at  bank.  What  was  the  cost 
of  the  grain,  and  how  much  were  his  profits  ? 

Ans.  Cost  of  grain,  $4994.43;  total  profits,  $916.6G. 
The  following  transaction  occurred  in  a  Philadelphia  com- 
mission house  : — 

23.  A  commission  merchant  received  an  order  to  purchase 
merchandise  worth  $1000,  on  which  he  paid  $50  for  drayage. 
He  was  to  effect  insurance  at  the  rate  of  1%  on  10%  advance 
of  total  cost  of  merchandise,  drayage,  commission  for  buying, 
and  cost  of  insurance,  and  was  to  receive  3%  commission  on 
total  cost  of  iijierchandise,  drayage,  and  insurance.  What 
was  the  amount  insured,  and  how  much  did  he  receive  for 
commission,  and  how  much  for  insurance? 

Ans.  $1203.28,  Com.  $31.86,  Ins.  $12.03. 

Suggestion.— -1  %  of  3%  =.0003,  which  added  to  l%=r.0103, 
which  increased  by  10%  of  itself  equals  .01133,  the  rate  of  insu- 
rance on  $1.  $1050  increased  by  3%  of  itself  equals  $1081.50. 
which  increased  10%  equals  $1189.65.  Then,  to  find  the  amount  to 
be  insured  to  cover  $1189.65  and  the  insurance,  or  .01133  of  itself, 
we  divide  $1189.65  by  $1  less  .01133,  which  gives  us  $1203.28. 


64 


STORAGE. 


STORAGE. 

Storage  is  charged  at  a  certain  price  per  barrel,  bale,  box,  etc., 
according  to  regulations  adopted  by  the  Chambers  of  Commerce  or 
Boards  of  Trade  of  the  different  cities. 

All  goods  stored  are  subject  to  one  month's  storage.  In  some 
places,  if  they  remain  any  part  of  a  month  they  are  charged  for  a 
full  month;  in  others,  after  the  first  month,  if  taken  out  within 
fifteen  days,  a  half-month  is  charged ;  if  after  fifteen  days,  a  whole 
month.  The  owners  of  the  goods  pay  for  putting  the  goods  in  store, 
stowing  away,  and  the  expenses  of  delivery. 

When  goods  are  received  and  delivered  at  the  pleasure  of  the  con- 
signor, the  dues  for  storage  are  usually  determined  by  an  average. 

To  compute  storage. 

Rule. — Multiply,  the  number  of  barrels,  or  other  articles,  first  entered, 
by  the  number  of  days  between  the  time  of  entrance  and  the  time  of  the 
first  delivery,  or  second  entrance.     Then 

Multiply  each  balance  by  the  number  of  days  it  continues  unchanged. 

The  sum  of  all  the  products  xoill  be  the  number  of  articles  in  store  for 
one  day.  To  find  the  number  stored  for  one  month,  divide  the  sum  of  the 
products  by  SO. 

Example. — What  is  the  cost  of  storage,  at  \f  per  bushel  per 
month,  of  wheat  received  and  delivered  as  per  following  account, 
closed  Oct.  2d,  1866  ? 

Account  of  Storage  of  Wheat  received  and  delivered  for  account  of 
A.  Y.  Rodgers  §  Co.,  St.  Louis. 


Date. 

Received. 

Delivered. 

Balances. 

Days. 

Products. 

1866. 

July 

2 

200 

<:00 

9 

1800 

" 

11 

150 

50 

5 

250 

" 

16 

350 

400 

5 

2000 

" 

21 

300 

100 

20 

2000 

August 

10 

400 

500 

5 

2500 

" 

15 

450 

50 

5 

250 

« 

20 

50 

0 

0 

0000 

Septemb'r 

5 

200 

200 

5 

1000 

'* 

10 

100 

300 

5 

1500 

" 

15 

200 

100 

17 

1700 

1250 

1150 

30)13000 

Bal.  on  hand  Oct.  2, 

100 

433+ 

1250 

1250 

433J  X  V  -  $4.33,  Ans. 


INSURANCE.  65 

INSURANCE. 

114:.  Insurance  is  a  contract  of  indemnity  by  which  one 
party  engages,  for  a  stipulated  sum,  to  insure  another  against 
a  loss  or  injury  to  which  he  may  be  exposed. 

115.  The  Insurer  is  the  person  who  takes  the  risk.  He 
is  sometimes  called  the  Underwriter,  from  the  custom  of 
individual  insurers  writing  their  names,  together  with  the 
amounts  for  which  they  will  be  responsible,  under  a  descrip- 
tion of  the  property  insured. 

116.  The  Premium  is  the  sum  paid  for  insurance,  and  is 
a  percentage  on  the  amount  insured. 

117.  The  Policy  is  the  instrument  containing  the  contract, 
and  describes  the  property  or  person  insured,  and  the  terms 
on  which  the  insurance  is  effected. 

118.  Insurance  companies  are  generally  incorporated  bodies ; 
but  persons,  such  as  commission  merchants,  shippers,  and 
others,  insure,  at  times,  as  well  as  companies. 

119.  Mutual  Insurance  Companies  are  those  in  which 
the  persons  insured  become  members  of  the  company,  and 
liable  to  a  certain  extent  for  its  losses;  they  also  share  in 
the  gains  of  the  company,  if  any. 

120.  Policies  are  of  two  kinds, —  Open  Policies,  and  Closed 
or  Valued  Policies. 

121.  A  Valued  or  Closed  Policy  is  one  in  which  the  amount 
insured  is  definitely  determined  at  the  time  the  insurance  is 
effected.  Houses,  furniture,  and  goods  in  store  are  insured  in 
policies  of  this  kind. 

122.  An  Open  Policy  is  one  upon  which  amounts  yet  to  be 

ascertained  and  insured  may  be  entered  at  different  times.    (See 

page  69.)     They  are  used  by  persons  who  insure  goods  which 

are  to  be  conveyed  from  one  place  to  another.     The  person 

taking  an  open  policy  gives  a  note,  called  a  Premium  Note, 

to  the  insurance  company,  as  security  for  the  premium  on 

the  amounts  he  anticipates  insuring  before  the  date  on  which 
E  6* 


66  INSURANCE. 

the  note  matures  This  note  at  maturity  is  returned  to  him 
on  payment  of  the  premiums  on  the  amounts  he  has  had  in- 
sured. A  nominal  premium  is  mentioned  in  the  policy  when 
made  out,  but  actual  premiums  are  fixed  at  the  time  the  risk 
is  reported,  and  are  regulated  by  a  scale  of  prices  arranged 
by  the  company. 

When  the  insurance  is  on  goods  to  be  imported  from  a 
foreign  country,  the  value  of  the  currency  of  that  country  is 
also  stated.  As  it  is  customary  to  insure  for  about  10%  more 
than  the  cost  of  the  invoice,  this  is  included  in  the  valuation 
of  the  foreign  currency.  English  money  is  thus  estimated  at 
$5.25  per  pound  sterling. 

When  the  insured  ships  goods,  or  receives  information  of 
goods  shipped  to  him,  he  must  notify  the  insurance  company 
as  soon  as  he  is  in  receipt  of  bill  of  lading  or  other  advice 
of  shipment. 

Some  open  policies  which  insure  invoices  shipped  abroad, 
contain  the  clause  that  "no  risk  shall  attach  until  the  amount 
and  description  of  the  same  shall  be  approved  and  indorsed 
thereon  by  the  company,  and  to  be  valued  at  the  sum  so  in- 
dorsed ;"  but  open  policies  designed  to  cover  goods  to  be  re- 
ceived will  cover  all  consignments  if  reported  immediately 
on  receipt  of  bill  of  lading  or  advice  of  shipment.  In  all  open 
policies,  to  the  description  of  the  property  are  added  the  words 
"lost  or  not  lost,"  so  as  to  include  all  goods  not  known  to  be 
actually  lost. 

123.  To  guard  against  fraud,  property  is  not  usually  insured 
for  its  full  value,  and  no  more  can  be  recovered  than  the 
amount  of  actual  loss.  The  party  insured  must  also  have  an 
interest  in  the  property  insured,  and,  when  goods  or  furniture 
are  destroyed,  must  be  able  to  give  a  full  enumeration  or 
description  of  the  property. 

Dwelling-houses,  and  permanent  property  about  the  value 
of  which  opinions  differ,  and  which  deteriorate  in  time,  may 
generally  be  insured  for  from  one-half  to  three-fourths  their 


INSURANCE.  67 

estimated  value ;  goods  at  sea,  or  in  transportation,  frjm  5  per 
cent,  to  25  per  cent,  more  than  their  cost  or  invoice  price,  in 
order  to  cover  the  expenses  of  freight,  insurance,  and  a  share 
of  the  profits;  goods  in  store,  at  their  cash  value;  but  the 
goods  are  not  usually  specified  until  a  fire  has  occurred, 

124.  Insurance  companies  will  not  insure  more  on  any  one 
risk  than  a  stated  amount,  which  usually  ranges  from  $3000 
to  $20,000,  according  to  the  capital  of  the  company  insuring, 
and  the  hazard  of  the  risk.  They  will  frequently,  however, 
take  a  larger  amount,  and  then  reinsure  themselves  for  part 
in  another  company. 

125.  The  rate  for  insuring  varies  according  to  the  degree 
of  risk  incurred,  either  from  original  liability,  or  from  the 
difficulty  of  preservation  or  recovery  when  fires  take  place ; 
and  some  property  is  so  hazardous  that  insurance  companies 
decline  to  insure  it  at  any  rate.  On  private  dwellings  the  rates 
are  about  2  per  cent,  for  a  perpetual  policy,  and  i  of  1  per 
cent,  annually;  goods  at  sea,  from  \  per  cent,  to  3  per  cent. 

The  following  rates  are  taken  from  those  adopted  by  the 
New  York  Board  of  Fire  Underwriters : — 

For  insuring  $100  in  dry  goods,  groceries,  boots  and  shoes, 
crockery,  furs,  leather,  paper,  wine  and  liquors,  dry  drugs, 
carpets,  jewellers'  stocks,  from  55  to  95  cts.  Retail  stocks 
of  tobacco  and  cigars,  books  and  stationery,  music  and  prints, 
organs,  wood  and  hollow  ware,  hats  and  caps  with  manufac- 
turing, cabinet  ware,  paints  and  oil,  toys,  vessels  in  port,  from 
90  cents  to  $1.20  per  $100.  Wholesale  drugs,  steam  tug- 
boats, steam  and  sail  vessels,  lumber-yards,  from  $1.25  to 
$1.65.     Tar,  naval  stores,  sugar-houses,  from  $1.50  to  $2.50 

126.  The  advantages  to  commerce  from  insurance  are  im- 
mense. "  Without  the  aid  that  it  affords,  comparatively  few 
individuals  would  be  found  disposed  to  expose  their  property  to 
the  risk  of  long  and  hazardous  voyages;  but  by  its  means  inse- 
curity is  changed  for  security,  and  the  capital  of  the  merchant 
whose  ships  are  dispersed  over  every  sea,  and  exposed  to  all 


68  INSURANCE. 

the  perils  of  the  ocean,  is  as  secure  as  that  of  the  agricultu- 
rist." The  dangers  from  not  being  insured  are  so  many  and 
so  great  that  none  but  millionaires  can  afford  to  remain  un- 
insured; and  it  is  considered  by  some  a  moral  duty  to  insure 
in  all  cases  where  the  interests  of  creditors  or  of  one's  family 
are  in  danger  from  the  omission  of  it. 

EXAMPLES    IN    INSURANCE. 

1.  What  is  the  premium  for  insuring  $4500  @  l2  %  ? 

4500  X  l2  =67.50.  Ans.  $67.50 

2.  What  will  it  cost  to  insure  a  house  for  $2G00  at  a  pre- 
mium of  2%,  the  policy  and  survey  costing  Si. 50? 

3.  Effected  insurance  on  a  cargo  from  Liverpool,  worth 
£1872  lis.  5<f.,  at  a  premium  of  12%.  What  is  the  pre- 
mium, the  pound  sterling  being  valued  at  $5.25? 

4.  If  the  premium  on  a  perpetual  policy  is  2%,  which  will 
be  returned  on  payment  of  5%  of  the  premium  for  every 
year  the  policy  is  held,  what  is  the  difference  in  the  cost 
of  a  perpetual  policy  insuring  a  house  valued  at  $4000,  and 
returned  at  the  end  of  four  years,  and  an  annual  policy  taken 
at  a  premium  of  £  of  1%  per  year  for  the  same  time? 

4000@2%=80.      5%of80=4.  4x4  =  16. 

4000®*%=  10.  10X4  =  40.      40  —  16  =  24. 

Ans.  $24. 

5.  What  is  the  cost  of  insuring  furniture  worth  $3000,  at  a 
premium  of  80  cts.  per  $100,  the  policy  and  survev  costing 
$1.50? 

6.  A  merchant  insured  his  goods  to  the  amount  of  $5000  in 
one  company  at  a  premium  of  12%,  and  $2800  in  another 
company  at  a  premium  of  l1  %.  The  policies  cost  $1  each. 
What  did  he  pay  in  all  ? 

7.  If  I  take  a  risk  of  $10,000  at  a  premium  of  l2  %,  and 
reinsure  it  at  l1  %,  what  will  be  my  gain? 

8.  If  I  take  a  policy  covering  goods  in  my  store  for  1  year, 
to  the  amount  of  $15,000,  at  a  premium  of  12%,  and  within 
that  time  I  insure  consignments  to  the  amount  of  $23,000, 
at  the  same  rate,  how  much  do  I  gain  ? 

9.  At  £  of  1  %  per  month,  what  will  be  the  cost  of  in- 
suring goods  worth  $2800  which  remain  in  store  3  months? 


OPEN    POLICY. 


69 


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70        MARINE  OR  GENERAL  AVERAGE. 


MARINE  OR  GENERAL  AVERAGE. 

127.  General  Average  means  a  contribution  made  bv 
all  parties  concerne-l  towards  a  loss  sustained  by  some  of  the 
parties  in  interest,  ibr  the  benefit  of  all.  In  such  cases,  the 
loss  arising  from  the  contribution  falls  within  the  provisions 
of  the  insurance  policy. 

128.  No  general  average  takes  place  unless  it  can  be  shown 
that  the  danger  was  imminent,  that  the  sacrifice  was  volun- 
tary and  considered  indispensable  for  the  safety  of  the  rest, 
and  that  the  portion  which  was  saved  was  saved  by  reason  of 
the  sacrifice. 

129.  Particular  Average  is  any  partial  loss,  without 
being  voluntarily  encountered,  and  is  borne  wholly  by  the 
owner  of  the  property  damaged.  In  cases  of  particular  ave- 
rage, the  indemnity  is  to  be  adjusted  upon  a  comparison  of 
the  gross  proceeds  of  the  sound  and  the  damaged  goods. 

130.  Jettison  (from  the  French  jeter,  to  throw)  is  the 
portion  of  goods  thrown  overboard. 

131.  Salvage  is  an  allowance  or  remuneration  made  to 
those  by  whose  exertions  ships  or  goods  are  saved  from  the 
dangers  of  the  seas,  fire,  or  enemies. 

132.  The  cargo,  including  the  part  sacrificed,  is  valued  at 
the  price  it  would  have  sold  for  in  cash  at  the  port  of  desti- 
nation. 

The  ship,  and  freight,  and  every  thing  on  board  which  pay? 
freight,  contribute  to  general  average.  The  wages  of  seamen 
do  not  contribute,  that  they  may  have  no  interest  in  op- 
posing a  sacrifi>3  necessary  to  the  general  safety. 

From  the  freight  i  is  usually  taken  (in  New  York  \)  for 
seamen's  wages,  pilotage,  &c,  to  find  its  contributory  value. 

In  the  valuation  of  repairs,  masts,  cables,  &c.,  it  is  cus- 
tomary to  deduct  -J, — thus  estimating  the  old  as  worth  |  the 
value  of  the  new. 


MARINE  OR  GENERAL  AVERAGE. 


71 


Statement  of  Genet  at  Average  of  the  "  Fairweather,"  Perran  J. 
Cooke,  Master,  from  New  York  to  New  Orleans,  in  consequence 
of  losing  part  of  her  rigging  by  a  violent  gale,  in  getting  aground 
on  Stirrup  Key,  and  by  throwing  part  of  her  cargo  overboard,  as 
appeal's  by  protest,  &c. 


Amount  of  Los 

SES. 

Paid  Gen.  Burton  and  Win.  II.  Taylor,  of  the  sloops  Emily 
and  Shamrock,  for  resistance  in  getting  vessel  off,  as  per 
agreement,                               v 

Protests,  postages,  stamps,  Ac, 

$8000.00 
5.00 

Value  of  goods  thrown  overboard : 
Fosdick  &  Co.'s  goods, 
G.  Porchs'              " 
Gustav  Piaggio's  " 

$1800. 
3840. 

4000. 

9640.00 

Freight  of  goods  thrown  overboard, 
Adjustment  of  average,  and  certificate, 

Total  losses, 
Contributory  Interests. 

6000.00 
25.00 

23670 

523670.00 

00 

Ship  Fairweather,  valued  at 

Goods  of  Fosdick  &  Co.,           $12500. 

"      "   G.  Porchs,                    17250. 

"      **   Gustav  Piaggio,             4000. 

"      "   J.  Burnside  &  Co.,        5250. 

$45000.  pays 

2958.75 

4083.07 

946.80 

1212.68 

10651 

50 

Total  cargo  valued  at,  as  per  invoices, 
Freight,  $24000,  less  %  = 

S39000.     " 
$16000.     " 

9231 

3787 

30 
20 

$100000.     " 

23670 

00 

Rate  of  contribution,  23.67  per  cent. 

Particular  Average  on  the  Ship. 

Repairs,  new  masts,  yards,  &c,  as  per  bills, 
Less  yz  for  new, 

Ship's  value,  $45000,  at  6%  per  cent.  = 

4275.00 
1425.00 

$2850.00 

The  different  parties,  if  fully  insured,  can  recover  from  the 
insurance  companies  the  amount  contributed  to  the  general 
loss. 


72        MARINE  OK  GENERAL  AVERAGE. 

133.  The  rules  for  adjusting  averages — with  all  the  inji 
dents  of  general  average,  salvage,  and  the  like — are  different 
in  different  countries.  In  most  commercial  ports  the  calcula- 
tions are  made  by  Adjusters  of  Averages, — a  class  of  men  who 
have  a  knowledge  of  the  customs  of  the  place  and  an  ex- 
tended experience,  both  of  which  are  necessary  in  order  to 
have  a  full  understanding  of  the  subject.  The  proportions 
of  general  average  are  calculated  as  follows : — 

134.  To  apportion  general  average. 

Rule  I. — Divide  the  sum  of  the  losses  by  the  sum  of  the 
contributory  interests,  and  multiply  each  contributory  interest 
by  the  quotient  thus  found;  the  product  icill  be  the  contribu- 
tion of  each  interest  to  the  general  loss. 

Or,  Rule  II. — By  Proportion. 

Sum  of  the  \  .  /sum  of  the")    ..    /each  contributory \  ,   f  sum  to  be 

contributory  interest  j    *   (      losses      J    "    \  interest  J    '  {contributed. 

MISCELLANEOUS    EXAMPLES. 

1.  What  sum  must  be  insured,  at  a  premium  of  1J%,  to 
cover  the  total  loss,  insurance  included,  of  a  cargo  valued  at 
$2731.25,  charges  $10.25,  policy  $1  ? 

2.  What  will  it  cost  to  insure  goods  worth  $3500,  at  a  pre- 
mium of  i%,  if  the  policy  includes  10%  advauce  on  the 
value  of  the  goods  ? 

3  I  paid  $32  for  an  insurance  on  goods  worth  $4800, 
shipped  from  Boston  to  Philadelphia.     What  rate  did  I  pay  ? 

Ans. 

4.  A  merchant  shipped  a  cargo  valued  at  $15,000  from 
New  York  to  Cuba,  which  he  insured  at  2!%.  The  addi- 
tional charges  were  $425.  For  how  much  must  he  sell  the 
cargo  to  gain  20%  on  the  entire  cost? 

5.  Insured  a  cargo  worth  fr.  97,500,  shipped  from  Havre 
to  New  York  per  the  Marie  Pierre.  What  was  the  cost  of 
insurance  at  13%,  if  the  franc  was  valued  at  25  cents  and 
the  cost  of  policy  was  $1  ?  Ans.  $427.56. 

6.  Insured  in  the  Girard  F.  &  M.  Insurance  Company 
goods  valued  at  $17,000,  and  paid  $127.50.  What  was  the 
rate  ? 


TAXES.  73 


TAXES. 

135.  Taxes  are  sums  of  money  assessed  on  persons,  pro* 
perty,  incomes,  or  products,  usually  for  some  public  purpose. 

136.  When  assessed  on  persons  without  regard  to  property, 
they  are  called  Capitation  or  Poll  Taxes;  and  in  some  places 
the  payment  of  a  poll  tax  is  required  before  the  privilege  of 
voting  is  granted. 

137.  Property  Tax  is  assessed  on  real  and  personal  estate, 
and  is  sometimes  apportioned  at  a  certain  per  cent.,  but 
usually  as  so  many  cents  on  S100,  or  so  many  mills  on  SI. 

Real  Estate  includes  immovable  property,  such  as  houses, 
lands,  &c.  All  other  property,  such  as  money,  notes,  stocks, 
mortgages,  furniture,  tools,  cattle,  &c,  is  called  Personal 
Property. 

138.  Taxes  are  also  assessed  by  the  United  States  Govern- 
ment on  incomes,  manufactures,  sales,  &c. 

139.  The  persons  who  estimate  the  value  of  the  property 
to  be  taxed,  and  apportion  the  taxes,  are  called  the  Assessors. 

140.  Before  assessing  taxes,  it  is  necessary  to  ascertain  the 
sum  to  be  raised,  including  expenses  for  collection  and  the 
proportion  which  it  is  expected  will  be  uncollectable. 

141.  To  find  what  sum  must  be  assessed  to  raise  a  given 
net  amount. 

Rule. — Subtract  the  rate  allowed  for  collection  from  $1, 
and  divide  the  net  amount  to  be  raised  by  the  remainder :  (lit 
quotient  will  be  the  entire  sum  to  be  assessed. 

EXAMPLES. 

1.  What  sum  must  be  assessed  to  raise  $950,000  net, 
allowing  5%  for  collection? 

$1.00  —  .05  =  .95.     $950000  -f-  .95  =  $1000000,  Ans. 

Proof.— 5  %  of  $1000000  ==  $50000.  $1000000  —  $50000 
=? $95000C. 

7 


n 


TAXES. 


14-2.  It  is  alsc  necessary  to  find  the  number  of  persons 
liable  to  pay  a  po*l  tax,  if  any;  to  estimate  the  value  of  all 
property,  both  real  and  personal,  to  be  taxed,  and  to  make  an 
inventory  of  it ;  to  determine  what  portion  of  the  tax  is  to  be 
raised  upon  the  polls,  or  articles  of  property  upon  which  there 
is  a  specific  tax  (if  any),  and  to  divide  it  equally  among  them. 

The  amount  to  be  raised  by  a  specific  tax  must  be  deducted 
from  the  total  amount  of  tax  to  be  raised.     Then, 

143.  To  find  how  much  must  be  paid  on  each  dollar  of 
taxable  property  to  raise  the  remainder  of  the  tax,  we  have 
the  following 

Rule. — Divide  the  amount  to  be  raised,  by  the  amount  of 
taxable  property,  less  that  part  on  which  nothing  can  be  col- 
lected :  the  Quotient  will  be  the  answer. 


EXAMPLES. 

1.  The  tax  assessed  by  a  certain  town  is  $37,500;  its  pro- 
perty is  valued  at  &2, 500,000.  What  rate  per  cent,  is  the  tax? 
and  how  much  will  be  paid  by  a  man  whose  property  is  assessed 
at  $12,000? 

37500  -s-  2500000  =  .015,  or,  1*  cts.  tax  per  dollar. 
12000  X  UJo  =  8180,  Ans. 

Proof. — When  a  tax  list  is  made  out,  the  amount  of  the  taxes  of  all 
the  individuals  in  it  should  equal  the  whole  tax  assessed. 


TAX  TABLE  AT  THREE  MILLS  PER  DOLLAR. 

$ 

* 

$ 

$ 

$      $ 

$ 

$ 

1  pays 

.003 

10  pay  .03 

100  pay  .30 

1000 

pay  3.0(1 

2  pay 

.006 

20  < 

'  .06 

200  «   .60 

2000 

'"   6.00 

3  " 

.009 

30  < 

<  .09 

300  "   .90 

3000 

«   9.00 

4  " 

.012 

40  « 

<  .12 

400  "  1.20 

4000 

"  12.00 

5  « 

.015 

50  ' 

<  .15 

500  "  1.50 

5000 

o  15.00 

6  « 

.018 

60  < 

<  .18 

600  «  1.80 

6000 

"  18.00 

7  " 

.021 

70  « 

'  .21 

700  "  2.10 

7000 

«  -21.00 

8  « 

.024 

80  < 

1    .24 

800  «  2.40 

8000 

"  24.00 

S  « 

.027 

90  < 

<  .27 

900  "  2.70 

9000 

"  27  00 

10  « 

.030 

100  < 

<  .30 

1000  "  3.00 

10000 

«  30.00 

o 


TAXES.  75 

2.  A  tax  of  $5130  is  to  be  raised  by  a  certain  town;  the 

property  to  be  taxed  is  assessed  at  8430,000.     There  are  240 

polls,  each  taxed  $1.     What  amount  must  be  levied,  allowin 

b<fo  commission  for  collecting?  what  will  be  the  tax  on  $1  ? 

and  what  will  be  the  tax  of  each  of  the  following  persons? 

A.,  who  pays  a  tax  on  $6000,  and  1  poll. 

B.,     "       "    "    "     "     5400,    "    2    " 

C,     "      "    "    "     "     1550,    "    4    " 


OPERATION. 

Tax  to  be  levied  on  the  town,  $5130.  Eate  of  collection,  5%. 
100  —  5  =  95.  5130  -v-  .95  =  5400,  the  amount  to  be  as- 
sessed. 

5%  of  5400  =  270,  amount  paid  for  collection. 

240  polls  at  $1  =  $240. 

Total  amount  to  be  raised,  $5400 

Less  amount  of  poll  tax,  240 

Amount  to  be  raised  on  property,      5160 
5160  -5-  430,000  =  .012,  or  12  mills  on  a  dollar. 
A.'s  tax,  $6000  @  .012  =  $72 

1  poll,  1 

Total,  $73 

B.'s  tax,  $5400  @  .012  =     $60.80 

2  polls,  2.00 

Total,  $62.80 

O.'s  tax,  $1550  @  .012  =     $18.60 
4  polls,  4.00 

Total,  $22.60 

3.  How  much  tax  will  a  person  pay  whose  property  is  assessed 
at  $6400,  if  he  pays  If  %  city  tax,  and  J  of  1%  State  tax,  be- 
sides paying  5%  United  States  tax  on  an  income  of  $1800? 

4.  What  rate  of  tax  is  required  to  raise  $27,500  on  pro- 
perty assessed  at  $1,850,000  ? 


76  INTEREST. 

5.  What  amount  of  taxes  will  a  person  pay  whose  income  isi 
$12,800  per  year,  from  which  a  deduction  of  $1900  is  allowed 
for  expenses,  5  %  being  charged  on  all  incomes  less  than 
$10,000,  and  10%  on  all  over  that  sum;  his  city  and  State 
tax  is  15  mills  per  dollar  .on  property  assessed  at  $75,000,  bo- 
sides  paying  a  tax  of  $2  on  his  gold  watch,  a  tax  of  $G  on 
Lis  carriage,  and  a  license  tax  of  $10? 


INTEREST. 

144.  Interest  is  compensation  for  the  use  of  money  or 
value.  The  sum  for  the  use  of  which  interest  is  paid  is 
called  the  Principal;  the  sum  of  the  Principal  and  Interest 
is  called  the  Amount. 

145.  Legal  Interest  is  the  rate  established  by  law.  Usury 
is  interest  greater  than  the  legal  rate,  and  is  prohibited  by 
law.  In  some  States,  however,  parties  are  allowed  to  give 
and  receive  higher  than  legal  rates  by  special  contract.  All 
interest  in  ancient  times  was  called  usury. 

146.  When  no  rate  is  mentioned,  the  legal  rate  is  always 
understood.  Debts  of  all  kinds  draw  interest  from  the  time 
they  become  due,  but  not  before,  unless  specified.  Interest 
on  interest  remaining  unpaid  is  considered  illegal. 

147.  The  legal  rate  in  most  of  the  States,  and  on  debts  due 
the  United  States,  is  6%  per  annum.  In  New  York,  Michi- 
gan. South  Carolina,  Wisconsin,  Georgia,  and  Minnesota,  it 
is  7%;  in  Alabama  and  Texas,  &%',  Louisiana,  5%;  Cali- 
fornia and  Kansas,  10%;  and  in  Oregon,  12]%. 

148.  The  legal  rate  in  England  and  France  is  5%;  in 
Canada,  Nova  Scotia,  and  Ireland,  6%. 

14*).  In  Pennsylvania,  commission  merchants  and  agents  of 
parties  not  residing  in  the  State  are  authorized  to  enter  into 
an  agreement  to  pay  a  rate  not  exceeding  7  %  on  balances  of 
money  remaining  in  their  hands,  and  to  receive  a  rate  not 
exceeding  that  amount,  for  advances  of  money  made  by  them 


COMPUTING    TIME.  77 

on  consignments  from  persons  living  and  transacting  busi- 
ness beyond  the  limits  of  the  State. 

150.  In  Arkansas,  Illinois,  Iowa,  Michigan,  Mississippi,  Mis- 
souri, and  Tennessee,  interest  as  high  as  10%  can  be  taken  by 
6pecial  contract;  in  Louisiana  and  Florida;  as  high  as  8%;  in 
Minnesota,  Texas,  and  Wisconsin,  as  high  as  12  %;  in  Califor- 
nia and  in  Massachusetts  (since  July  10, 1867),  any  per  cent. 

151.  Most  merchants  settle  their  accounts  semi-annually,  or 
oftener,  and  the  interest  is  calculated  for  days.  The  interest 
on  Notes  and  Bonds  which  have  some  time  to  run,  is  gene- 
rally calculated  for  months  and  days. 


COMPUTING   TIME. 

152.  To  find  the  time  between  two  dates,  omit  the  day  of 
the  date  and  include  the  day  of  maturity. 

For  instance,  if  Tuesday  is  the  tenth  day  of  the  month,  to 
the  next  Tuesday,  the  seventeenth,  is  seven  days;  but  if  both 
Tuesdays  are  included,  we  have  eight  days,  if  both  are 
omitted,  only  six  days. 

153.  When  months  are  mentioned,  they  are  construed  to 
mean  calendar  months,  by  which  is  meant  the  time  from  one 
day  in  one  month  to  the  same  day  in  another  month. 

Notes  or  securities  falling  due  on  the  30th  or  31st  of  any 
month  which  has  only  28,  29,  or  30  days  in  it,  are  considered 
to  be  nominally  due  on  the  last  day  of  the  month,  and  there- 
fore legally  due  on  the  3d  of  the  following  month.  For  in- 
stance, a  note  dated  November  30th,  payable  3  months  after 
date,  falls  due  on  the  last  day  of  February,  anfl  three  days  of 
grace  make  it  payable  on  March  3d.  Less  than  a  month  is 
reckoned  at  tr  e  rate  of  30  days  to  the  month. 

154.  When  it  is  required  to  find  the  difference  between  two 
dates  in  years,  months,  and  days,  it  may  be  done  as  in  Sub- 
traction of  Conpound  Numbers. 


i 


I 


78  COMPUTING   TIME. 

EXAMPLE. 

What  is  the  difference  in  time  between  July  15th,  1865, 
and  September  19th,  1862? 

The  earlier  date  is  placed  under  the  later,  and  the  numbers 
of  the  months  are  written  instead  of  their  names. 

Yr.       mo.    da. 

1865     7     15 
1862     9     19 

2     9     26 

155.  As  the  number  of  days  in  the  different  months  varies, 
counting  time  by  days  is  the  only  exact  method,  when  the 
dates  are  less  than  a  year  apart. 

From  Jan.    1,  1867,  to  July   1,  1867,  is  6  mos.,  containing  181  days. 
"      Sept.  1,     "       "  Mar.  1,  1868,  "  6    "  "  182     " 

"      Apr.    1,     "      "  Oct.    1,  1867,  "  6    "  "  183     " 

"      Mar.  1,     «      «  Sept.  1,     "      "  6    "  "  184    " 

156.  The  number  of  days  between  two  given  dates  may  be 
found  as  in  the  following  example  : — 

What  is  the  number  of  days  between  January  5th  and 
July  3d? 


In  Jan. 

26  days. 

"    Feb. 

28     " 

dd  the  number  of  days  in  January 

"    Mar. 

31     « 

after  the  5th  to  the  days  in  the 

"    Apr. 

30     " 

intervening  months,  and  the  three 

"    May 

31     " 

days  in  July. 

"    June 

30     " 

«    July 

3     " 

Total,     179 

157.  Or,  call  each  month  30  days,  and  correct  by  adding  one 
for  every  month  intervening  which  contains  31  days,  and 
subtract  two  for  February,  except  in  leap-years;  then  but  1. 
In  the  example  already  given,  from  Jan.  5th  to  July  3d, 
there  are  five  whole  months,  two  of  which  contain  31  days, 
and  one,  February,  contains  but  28.  They  consequently 
average  30  days  each,  making  150,  which,  with  26  days  in 
January  and  3  days  in  July,  make  a  total  of  179. 

Time  Tables  will  be  found  useful  for  ascertaining  the  time 
between  different  dates.     (See  Time  Table,  page  114.) 


COMPUTING    TIME.  79 

158.  It  is  sometimes  desirable  to  know  for  what  time  to 
draw  a  note  so  that  it  will  not  fall  due  on  a  Sunday  or  a 
holiday.  After  finding  the  number  of  days,  divide  by  7  to 
obtain  the  number  of  weeks  and  days,  then  count  the  odd 
days  from  the  day  of  the  week  on  which  the  note  is  dated. 
In  the  example  given,  179  days  =  25  weeks  and  4  days.  If 
January  5th  was  on  Monday,  then  July  3d  will  be  four  days 
from  Monday,  or  on  Thursday. 

159.  The  following  may  be  useful  to  those  who  have  fre- 
quent occasion  to  draw  notes  : — 

33  days  =  4  weeks  and  5  days,  63  days  =  9  weeks,  93  days  =  13 
weeks  and  2  days :  therefore, 

A  note  at  thirty  days  will  fall  due  five  days  later  than  the  day  of 
the  week  on  which  it  was  given. 

A  note  at  sixty  days  will  fall  due  on  the  same  day  of  the  week. 

A  note  at  ninety  days  will  fall  due  two  days  later. 

160.  It  is  customary  among  business  men,  in  reckoning  in- 
terest, to  consider  the  year  as  consisting  of  12  months  of  30 
days  each,  or  360  days.  As  there  are  365  days  in  a  year, 
this  gives  j|g,  or  ^3,  too  much.  The  difference  is  so  small, 
however,  that  in  ordinary  transactions  it  is  not  noticed.  The 
mercantile  custom  has  in  many  cases  been  sanctioned  by  law. 
In  New  York,  the  law  on  this  subject  (Kev.  Stat.  vol.  ii. 
p.  182)  reads  as  follows: — 

"For  the  purpose  of  calculating  interest,  a  month  shall  be  con- 
sidered the  twelfth  part  of  a  year,  and  as  consisting  of  thirty  days ; 
and  interest  for  any  number  of  days  less  than  a  month  shall  be  esti- 
mated by  the  proportion  which  such  number  of  days  shall  bear  to 
thirty." 

INTEREST    AT    6    PER    CENT. 

161.  The  interest  on  $1  for  one  year  or  * 

12  months  =  6  cents. 
2       "       =1  cent. 
1  month  or  30  days      ==    h  cent,  or  5  mills. 
6     "         =  1  mill. 

Therefore,  one-half  the  number  of  months  equals  the  interest  on 
1  dollar,  in  cents;  and  one-sixth  the  number  of  days  equals  the  in- 
terest on  1  dollar,  in  mills. 


I 


) 


80  INTEREST   AT    SIX    PER    CENT. 

162.  To  compute  interest  at  6  per  cent. 

If  the  time  is  in  months  or  years. 

Rule. — Multiply  the  principal  by  one-half  the  number  of 
months,  and  point  off  two  decimals.  If  there  are  cents  in  the 
principal,  point  off  four  decimals;  the  remaining  figures  will 
be  the  interest,  in  dollars. 

If  the  time  is  in  days. 

Rule  I. — Multiply  the  principal  by  one-sixth  the  number 
of  days,  and  in  the  product  point  off  three  decimals.  If  there 
are  cents  in  the  principal,  point  off  five;  the  remaining  figures 
will  be  the  interest,  in  dollars. 

Or,  to  avoid  multiplying  by  fractions : — 

Rule  II. — Multiply  the  principal  by  the  number  of  days, 
and  divide  the  product  by  6;  then  point  off  as  in  the  pre- 
ceding rule.      (See  Cancellation,  Art.  19.) 

163.  When  the  time  is  less  than  1  month,  the  cents  in  the  principal  may 
be  disregarded;  when  less  than  2  months,  all  under  50c;  when  less 
than  3  months,  all  under  33c. 

EXAMPLES. 

1.  What  is  the  interest  on  $1875  for  7  months? 

1875  X  3*  ==  6562*  Ans.  $65.62*. 

2.  What  is  the  interest  on  $4250  for  24  days  ? 

4250  X  4  =  17000  Ans.  $17. 

3.  What  is  the  interest  on  $5650.37  for  27  days  ? 

4.  "  "  $7250.45    "   3mos.  29  days? 

5.  "  "  $364.50    "   lyr.4mos.12da.? 

6.  "  "  $1575.25    "   9  mos.  17  days  ? 

The  notes,  accounts-current,  interest  accounts,  in  another  part  of 
the  book,  will  afford  additional  examples  for  practice. 

164.  To  compute  interest  at  any  given  rate. 
Rule  I. — Find  the  interest  at  six  per  cent.,  and  divide  it 
by  6;  the  quotient  will  be  the  interest  at  one  per  cent.;  then 
multiply  this  interest  by  the  given  rate.     Or, 


INTEREST    ON    U.  S.    BONDS. 


81 


Rule  II. — Find  the  interest  at  six  per  cent,  and  add  to  it 
or  subtract  from  it  in  the  same  ratio  as  the  given  rate  is 
greater  or  less  than  6. 

For  1%  add  I. 
«    8%    «     L 

"    df0    "     L  or 

divide  by  4  instead  of  6. 
"IQfo  take  W  by  annexing  one 

cipher   and    dividing 

by  6. 
"  12%  multiply  by  2,  or  divide 

by  3  instead  of  6. 


For  3  %  take      §,  or  divide  by  12 
instead  of  6. 
"    4%  subtr   |,  or  divide  by  9 
instead  of  G. 

"    5%       «      (. 

Note. — As  the  interest  for  60  days  at 
6  per  cent,  equals  1  cent  for  every  dollar, 
interest  at  that  rate  can  be  found  by  add- 
ing or  subtracting  as  the  time  is  more  or 
less  than  60  days. 


EXAMPLES. 

1.  Find  the  interest  on  $1285.      for  33  days  at    7%. 

2.  "  "  $4825.60    "   90     "  «    9%. 

3.  "  "  $2726.35    "   3mos.  18  da.  "  10%. 


ACCURATE   INTEREST. 

165.  To  compute  accurate  interest. 

Rule. — Find  the  interest  as  in  the  preceding  rules,  and 

subtract  from  it  -fa  part  of  itself  ;  in  leap-year  subtract  i. 

Note. — -fa  equals  a  little  less  than  1\  cents  for  each  dollar  of  interest. 

Or,  Multiply  the  interest  on  the  given  sum  for  1  year  by  the  num- 
ber of  days  for  which  interest  is  required,  and  divide  by  365.  The 
quotient  will  be  the  required  interest.  This  rule  is  equivalent  to 
the  following  formula : — 


! 


As  365 


H 


The  number  of") 
days  for  which  > 
int.  is  required  j 


(The  int.  on  the")       ( 

: :  -<     given  sum  for  >  :  ■< 

t    lyear  J       ( 


The 

required 

int. 


INTEREST  ON  GOVERNMENT  BONDS. 

166.  By  the  ordinary  method  of  computing  interest  at  6  % , 

the  interest  on  $6000  is  $1  per  day,  and  the  principal  will 

double  itself  in  200  months.     The  difference  to  the  United 

States  Government  between  paying  interest  at  the  rate  of 

360  days  to  the  year,  and  paying  accurate  interest,  or  at  the 

rate  of  365  days  to  the  year,  is  $5  per  year  for  every  $6000. 
F 


82  INTEREST   IN   ENGLAND. 

The  Five-  Twenty  Loan  is  over  $950,000,000,  and  the  interest 
on  it  more  than  $155,000  per  day.  The  difference,  on  this 
loan,  between  usual  interest  and  accurate  interest,  is  nearly 
$2250  per  day.  The  formula  under  the  preceding  rule  is 
employed  in  the  Treasury  Department  at  Washington. 

EXAMPLES. 

1.  What  is  the  interest  on  U.  S.  Bonds  of  $15000  from 
May  1st  to  July  17th,  at  6%  ? 

From  May  1st  to  July  17th  ==  77  days. 
Int.  on  $15000  for  1  year  ==  $900  ;      900  X  77  =  69300. 
69300  -f-  365  ==  $189.86  Ans. 

2.  What  is  the  interest  on  a  Five-Twenty  U.  S.  Bond  of 
$1000  from  Nov.  1st  to  Feb.  3d?  Ans.  $15.45. 

3.  What  is  the  interest  on  a  Ten-Forty  U.S.  Bond  of  $1000, 
bearing  5%  interest,  from  March  1st  to  Aug.  10th? 

Ans.  $22.19. 

INTEREST  IN  ENGLAND. 

167.  The  legal  rate  of  interest  in  England  is  5  per  cent., 
and  parts  of  a  year  are  counted  in  days  at  the  rate  of  365 
days  to  the  year.     To  compute  English  interest : — 

Rule. — Reduce  the  shillings  and  pence,  if  any,  to  the  deci- 
mal or  fraction  of  a  pound  (see  Art.  72)  ;   then — 

For  Years — Multiply  the  principal  by  the  number  of  years, 
and  the  product  will  be  the  interest,  in  shillings. 

For  Months — Multiply  the  principal  by  the  number  of 
months,  and  the  product  will  be  the  interest,  in  pence. 

For  Days — Multiply  the  principal  by  the  number  of  days, 
divide  the  product  by  78,  and  point  off  two  decimals:  the  Quo- 
tient will  be  the  interest,  in  the  denomination  of  the  principal. 

Example. — What  is  the  interest  on  £425  for  1  year,  3 
months,  and  10  days,  at  5%  ? 

425s. ,  interest  for  1  year. 
106.25     "         "    3  months. 
11.64     "         "  10  days. 

542.89s.  =  £27  2s.  \\d.  Ans. 


PROBLEMS  IN  INTEREST.  83 

PROBLEMS  IN  INTEREST. 

168.  To  find  the  principal,  when  the  time,  rate  per  cent., 
and  interest  are  given. 

Rule. — Divide  the  given  interest  by  the  interest  on  ONE 
dollar  for  the  given  rate  and  time. 

EXAMPLES. 

1.  What  sum  invested  at  6%  for  one  year  will  produce 
8360? 

Interest  on  $1,  for  1  year,  at  6%  =  .06. 

.06)360.00  =  6000  Ans.  $6000. 

2.  What  principal  in  2  years  at  7%  will  give  $3556  ? 

3.  "  "  3     "     6  mos.  at  6%  will  give  $470? 

4.  "  "  6     "     8     "    «  8%       "         $540? 

5.  "  "  3     «     4     «    "  6%       "         $540? 

6.  What  must  I  pay  for  real  estate,  producing  $750  per 
year,  that  I  may  receive  6%  on  my  investment? 

7.  What  must  I  pay  for  stocks,  paying  a  dividend  of  $345 
yearly,  that  I  may  gain  9  %  ? 

8.  What  reduction  must  I  obtain  that  I  may  purchase 
stocks  of  the  par  value  of  $8000,  paying  6  %  dividend  yearly, 
to  receive  8  %  on  what  I  invest  ? 

169.  To  find  the  rate  per  cent.,  when  the  principal,  time, 
and  interest  are  given. 

Rule. — Divide  the  given  interest  by  the  interest  on  the  prin- 
cipal at  one  per  cent. 

examples. 

1.  A  house  which  cost  $4800  rents,  above  expenses,  for 
$264  per  year.  What  per  cent,  does  it  pay  on  the  invest- 
ment? 

Interest  on  4800  at  1  %  =  48. 

264--48  =  5J  Ans.  5J%. 

2.  If  I  invest  $3500  for  1  year,  2  months,  and  receive 
$490,  what  rate  do  I  receive  per  year?  Ans.  12%. 

170.  To  find  thp  time j  when  the  principal,  rate,  and  interest 
are  given. 


84  TRUE   DISCOUNT. 

Rule. — Divide  the  given  interest  by  the  interest  on  the  prin- 
cipal for  one  day;  the  quotient  will  be  the  required  time,  in 
days. 

EXAMPLES. 

1.  In  what  time  will  $5530.42  produce  $30.42  interest 
at6%? 

Interest  on  $5530.42  for  1  day  =  .921+ 

.921)30.42(33+. 

2763 

2790 

2763  Ans.  33  days. 

2.  How  long  will  it  take  a  sum  of  money  to  double  itself 
at  6  %  simple  interest  ?     At  7  %  ?     At  8%  ? 

3.  Invested  $6000  at  6%,  for  which  I  received  $750.42. 
How  long  was  it  invested  ? 

171.  To  find  the  principal,  when  the  time,  rate  per  cent.,  and 
amount  are  given. 

Rule. — Divide  the  given  amount  by  the  amount  of  one 
dollar  for  the  given  rate  and  time. 

examples. 

1.  What  principal  will  amount   to  $1120  in  2  years,  at 

Amount  of  $1  for  2  years  at  6%  ==  $1.12. 

1120  -+■  1.12  =  1000  Ans.  $1000. 

2.  What  principal  will  amount  to  $1500  in  1  year,  3  mos., 
at5%?    At7%? 

TRUE   DISCOUNT. 

172.  Discount,  as  usually  calculated,  is  the  same  as  Simple 
Interest;  but  true  discount  is  a  deduction  from  an  amount 
which  is  equal  to  the  interest  on  the  remainder  at  the  same 
rate  and  for  the  same  time  for  which  the  deduction  was 
made. 

173.  The  Present  Worth  is  the  sum  paid,  or  the  value 
of  the  note,  or  debt,  after  the  discount  has  been  deducted. 


BANKING.  85 

174.  To  find  the  Present  Worth. 

Rule. — Divide  the  given  sum  by  the  amount  of  one 
DOLLAR  for  the  given  rate  and  time. 

To  find  the  discount,  subtract  the  present  worth  from  the 
given  sum. 

EXAMPLES. 

1.  What  is  the  present  worth  of  $1360,  due  6  years  hence, 
@6%? 

Int.  on  $1  for  6  yrs.  =    .36 
1.00 

Amount,   1.36)1360.00(1000 

Ans.  $1000. 

2.  What  is  the  present  worth  of  $1248,  due  8  months 
hence,  @  6  %  ?     What  is  the  true  discount  ? 

3.  What  is  the  present  worth  of  $162.50,  due  6  months 
hence,  @  7%,  and  what  the  discount? 

BANKING. 

175.  Bank  Discount  is  computed  in  the  same  manner  as  simple 
interest.  It  is  deducted  from  the  amount  or  face  of  the  note  when 
the  note  is  discounted,  and  the  remainder,  called  the  proceeds,  is 
placed  to  the  credit  of  the  person  for  whom  the  note  is  discounted. 
As  the  person  offering  the  note  can  obtain  the  money  immediately, 
and  the  note  may  remain  unpaid  until  three  o'clock  on  the  day  of 
its  maturity,  banks,  generally,  in  reckoning  time,  include  the  day  on 
which  the  note  is  discounted,  as  well  as  the  day  on  which  it  matures. 
This,  with  the  three  days  of  grace,  for  which  discount  is  also  taken, 
makes  four  more  days  than  the  time  mentioned  in  the  note. 

See,  also,  Transactions  with  Banks. 

176.  To  compute  Bank  Discount. 

Rule. — Multiply  the  amount  by  \  the  number  of  days,  in- 
cluding the  day  of  discount  and  the  three  days  of  grace,  and 
in  the  product  point  off  three  decimals. 

The  above  will  give  the  interest  at  #%.  For  any  other  rate, 
add  or  subtract  in  proportion  as  the  given  rate  is  greater  or 
less  than  6%,  as  in  Art.  164- 


86  BANKING. 

EXAMPLES. 

1.  Robert  F.  Hay,  on  May  2d,  offered  the  following  note, 
properly  indorsed,  for  discount  :— 

8525.  Philadelphia,  March  29,  1867. 

Sixty  days  after  date,  we  promise  to  pay  to  Robert  F. 
Hay,  or  order,  at  the  Union  National  Bank,  Five  Hundred 
and  Twenty-Five  Dollars,  without  defalcation.  Value  re- 
ceived. R.  J.  Birney  &  Co. 

How  much  will  he  receive  as  the  net  proceeds  of  the  note  ? 

60  days  from  March  29th  is  May  28th,  which,  with  the  three 
days  of  grace  added,  gives  May  31st.  From  May  2d  to  May  31st, 
including  the  day  of  discount,  is  30  days. 

Interest  on  $525  for  30  days  =     2.63  discount. 

525  —  2.63  =  522.37  net  proceeds. 

Face  of  the  note,    $525.00 

2.  On  Nov.  4th,  offered  for  discount  a  note  for  $350,  dated 
Oct.  15th,  payable  3  months  after  date.  How  much  cash  will 
I  receive  ? 

Find  the  time,  discount,  and  proceeds  of  the  following 
notes : — 

3.  Discounted  Nov.  4th,  at  6%. 

$750.  Pittsburgh,  Oct.  15,  1866. 

Three  months  after  date,  I  promise  to  pay  to  the 
order  of  Jas.  Dunlap  &  Co.  Seven  Hundred  and  Fifty  Dollars, 
at  the  Citizens'  National  Bank,  without  defalcation.  Value 
received.  John  F.  Chase. 

4.  Discounted  Jan.  12th,  at  1%. 


$1250./0V  New  York,  Dec.  10,  1865. 

Sixty  days  after  date,  I  promise  to  pay  to  S.  H. 
Crittenden  &  Co.,  or  order,  Twelve  Hundred  and  Fifty  y7^ 
Dollars,  for  value  received.  Henry  T.  Stewart. 


Discounted  July  6th,  at  6  % , 


$450.Ts°0.  Trenton,  N.J.,  May  10,  1866. 

Four  months  after  date,  I  promise  to  pay  at  the 
First  National  Bank,  to  the  order  of  Samuel  T.  Brown,  Four 


BANKING.  87 

Hundred  and  Fifty  -A&  Dollars,  without  defalcation  or  dis- 
count.    Value  received. 

HAYWARD,    GrLEASON   &   Co. 


Discounted  Sept.  18th,  at  6%. 


$1875.  Chicago,  Aug   15,  1866. 

Ninety  days  after  date,  we  promise  to  pay  to  the 
order  of  Charles  Manning  &  Co.  Eighteen  Hundred  and 
Seventy-Five  Dollars,  for  value  received. 

H.  Evans  &  Co. 


177.  To  find  how  large  a  draft,  at  a  given  premium,  may  be 
purchased  for  a  certain  amount. 

Rule. — Divide  the  given  amount  by  $1,  increased  by  the 
rate  of  premium. 

Note. — To  find  how  large  a  draft  may  be  purchased,  when  sold  at  a 
discount,  divide  the  given  amount  by  $1,  less  the  rate  of  premium. 

EXAMPLES. 

1.  How  large  a  draft  may  be  purchased  for  $2020,  at  a 


lo  ■ 


premium  of  1 

1.01)2020(2000.  Ans.  $2000. 

2.  What  is  the  face  of  a  draft  on  New  York  to  cost  $18500, 
2X\\CJ0  premium? 

3.  For  what  amount  may  a  draft  on  Cuba  be  purchased 
with  $6430.77,  at  a  premium  of  4£%  ? 

4.  A  commission  merchant  wishes  to  invest  the  proceeds 
of  a  sale,  amounting  to  $4840,  in  a  draft  on  St.  Louis,  which 
can  be  purchased  at  a  discount  of  f%.  How  large  a  draft 
can  he  obtain  ? 

178.  To  find  the  amount  of  a  note  that  shall  produce  a  given 
sum  when  discounted  at  bank. 

Kule. — Divide  the  given  sum  by  the  proceeds  of  $1  for  the 
given  rate  and  time. 


88 


BANKING. 


EXAMPLES. 

1.  For  what  sum  must  a  note  be  drawn  so  that  the  discount 
for  63  days  at  6%  may  be  deducted  and  the  proceeds  will  be 
$1295  ? 

Interest  on  $1  for  63  days  =  .0105. 
$1.0000 
.0105 

.9895)1295(1308.74  Ans. 

2.  Required  the  amount  of  a  note  that  may  be  discounted 
for  33  days,  at  6  % ,  and  $5500  received  as  the  proceeds. 

3.  How  large  must  a  note  be  made  to  obtain  $425.50  from 
a  bank,  for  42  days;  discount  @  6%  ? 

179.  Banks,  by  deducting  the  interest  in  advance,  obtain  a 
larger  rate  per  cent,  than  they  would  by  taking  true  discount ; 
and  this  rate  increases  in  proportion  to  the  time  for  which  the 
discount  is  taken.  The  advantages  of  short  credits,  however, 
are  generally  considered  to  be  more  than  an  equivalent  for 
any  such  excess  that  might  be  gained  by  extending  the  time. 

The  following  table  shows  the  rates  of  interest  obtained  by 
banks,  including  the  advantage  from  compounding  the  interest, 
when  they  discount  notes  at  6  and  at  7  per  cent.,  for  any  num- 
ber of  months  from  one  to  twelve.  It  will  be  seen  that  when 
the  time  is  less  than  two  months — the  usual  limit  for  which 
notes  are  discounted  in  cities — the  excess  is  inconsiderable. 


RATE. 

6 

a 

i 

a 

i 

a 

CO 

CO 

O 
1 

i 
a 

i 

a 

CO 

m 
O 

a 

00 

O 

a 

00 

an 

O 

a 

OS 

o 

a 

© 

S* 

a 

1 

6  per  cent. 

6.200 

6.216 

6.232 

6.248 

6.264 

6.281 

6.298 

6.315 
7.432 

6.332 

6.349 

6.366 

6.383 

7  "      " 

7.272 

7.295 

7.317 

7.339 

7.362 

7.385 

7.408 

7.456 

7.480 

7.503 

7.527 

At  the  nominal  rate  of  6  per  cent.,  a  bank  receives,  when 
it  discounts  a  note  for  1  month,  -g|^,  or  .5^V  of  1  per  cent, 
(■glfxjof  1  percent,  more  than  6  per  cent,  per  annum  —  \  of 
one  cent  on  $99.50);  when  for  2  months,  ^,  or  1-^  pel 
cent. ;  when  for  1  year,  ^?,  or  6|f  per  cent. 


INTERESr    ACCOUNTS.  89 


INTEKEST   ACCOUNTS. 

180.  In  the  settlement  of  mercantile  accounts,  interest  is 
calculated  or  not,  according  to  custom  or  the  agreement  of 
the  parties.  Amounts  are  considered  due  at  the  time  they 
should  be  paid  in  cash,  or  when  they  are  equivalent  to  cash. 

181*  Bankers,  Saving  Funds,  &c,  charge  and  allow  interest 
on  dealers'  accounts  according  to  regulations  which  vary  in 
different  places.  After  the  time  is  adjusted,  interest  is  gene« 
rally  calculated  by  one  of  the  following  methods : — 

FIRST   METHOD. 

By  Interest  on  each  amount  to  the  time  of  set- 
tlement. 


SECOND   METHOD. 
By  Product  of  Days. 

THIRD  METHOD. 
By  Daily  Balances. 

182.  By  the  First  Method,  interest  is  reckoned  on  each 
amount  from  the  day  it  is  due  to  the  day  of  settlement,  and 
the  balance  between  the  debit  and  credit  interest  is  added  to 
that  side  of  the  account  on  which  the  amount  of  interest  is 
the  largest. 

When  an  amount  is  not  due  until  after  the  day  of  settle- 
ment, a  discount  is  allowed,  and  entered  on  the  opposite  side 
of  the  account  in  the  interest  column. 

The  labor  of  making  out  such  accounts  is  much  lessened  by  the 
use  of  Interest  Tables,  such  as  Price's  and  others. 


90  INTEREST   ACCOUNTS. 

183.  By  tlie  Second  Method,  each  amount  is  multiplied 
by  the  number  of  days  from  the  time  it  is  due  to  the  day  of 
settlement.  The  interest  on  the  sum  of  the  products  for  one 
day  equals  the  sum  of  the  interest  on  each  amount  taken 
separately.  The  interest  on  the  balance  of  products  for  one 
day  equals  the  balance  of  interest. 

When  an  amount  is  not  due  until  after  the  day  of  settle- 
ment, it  is  multiplied  by  the  number  of  days  from  the  day  of 
settlement  to  the  day  when  it  becomes  due,  and  the  product 
is  placed  in  the  column  of  products  on  the  opposite  side,  in 
the  same  manner  as  discount  is  treated  in  the  first  method. 

184.  By  the  Third  Method,  the  balance  existing  at  any 
time  is  multiplied  by  the  number  of  days  it  remains  un- 
changed. The  interest  on  the  product  for  one  day  equals 
the  interest  on  the  balance  for  the  number  of  days  it  con- 
tinues ;  and  the  interest  on  the  difference  between  the  total 
daily  balances  for  one  day  equals  the  balance  of  interest  be- 
tween the  debit  and  credit  sides  of  the  account,  calculated 
on  each  amount  separately,  as  by  the  first  method. 

When  the  rate  of  interest  on  one  side  of  the  account  is 
different  from  the  rate  on  the  other,  the  interest  is  calculated 
on  the  total  daily  products  of  each  side  separately  for  one 
day,  and  the  balance  of  interest  is  taken.  If  the  rate  of  in- 
terest on  both  sides  of  the  account  is  the  same,  the  difference 
between  the  footings  of  the  debit  and  credit  sides  of  the  total 
daily  balances  may  be  taken  first,  and  the  interest  reckoned 
on  that  for  one  day. 

This  method  is  used  by  many  bankers.  Besides  saving 
much  labor,  the  total  daily  balances  may  be  entered  without 
defying  for  any  particular  day,  and  can  therefore  be  kept  in 
readiness,  and  the  account  completed  with  very  little  addi- 
tional trouble,  whenever  the  day  of  settlement  is  determined. 

For  practice,  all  the  accounts  given  may  be  made  out  in  each  of 
the  different  methods,  and  may  also  be  averaged  by  Compound  Ave- 
rage with  the  same  results  as  above. 


INTEREST    ACCOUNTS. 


91 


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COO'S. 

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9 

II 

If 

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a 
to 

1  «"  1 

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640 
5962 

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s 

1 

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81          8 

8 

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8 

8 

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5 

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8 

to 

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P 
P 

1 

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$ 

fe 

3 

o 

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I 

r 

4 

o 

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CO 

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3   . 


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d<R 


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g 

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p 

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g 

i 

71 

3 

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W 

p 

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a 

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k 

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8 

w 

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w 

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o 

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n 

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w 

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53 

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92 


INTEREST   ACCOUNTS. 


w 

H 

0 

o 

o 

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ft 

J 

w 

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, 

ntf 

9" 

£ 

p 

< 

p 

a 

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ITS  55 

1 

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11311 

£  x  *  rt 
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1    +    ^ 


a   . 

ft)    IS 

1867. 
Feb.    5 

May  23 

July  5 

6 

a 

ft 

1867. 
Feb.    5 
May  10 

June  2 
July   1 

67875 
23400 
10184 

© 
8 

© 

© 

3 

1 

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co      us      eo 

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rH    3 


INTEREST   ACCOUNTS. 


93 


THIED  METHOD— BY  DAILY  BALANCES. 

The  Western  Saving  Fund 

In  account  with  Henry  J.  Eodgers. 

Interest  to  Feb.  28th,  1867. 


1867. 

1 

1867. 

1 

Jan. 

2 

To  Cash, 

100 

00 

Jan. 

7 

By  Check, 

50 

00 

" 

12 

"      " 

M50 

00 

u 

22 

"       " 

100 

00 

Feb. 

11 

U           M 

30 

00 

Feb. 

1 

M           « 

40 

00 

" 

'21 

U           (i 

200 

no 

U 

21 

M          N 

50 

00 

" 

28 

"  Int.  to  Feb.  28, '67, 

1 

62 

U 

28 

"   Cash    on    settle- 

ment of  acct. 

341 

62 

581 

02 

581 

M 

Balances. 


Time. 


100,  from  Jan.  2  to  Jan.   7,     5   days  as    500  for  1  day. 


50, 

«< 

»      7   " 

«    12, 

5 

(« 

sa    250   "        " 

300, 

U 

«    12   " 

"    22, 

10 

<« 

=  3000  «       " 

200, 

<< 

«   22   « 

Feb.    1, 

10 

u 

=  2000  "       m 

160, 

<< 

Feb.   1   " 

"     11, 

10 

<« 

=  1600  "       " 

190, 

" 

i-i 

"     21, 

10 

i< 

=  1900  »       " 

340, 

«< 

u     21   " 

««     28, 

7 

<« 

=  2380  "       « 

11630 
Total  daily  balance  =  $11630  for  1  day. 
Which,  at  5%  interest  =  $1.62. 


3.  What  is  the  balance  due  on  March  1st  of  the  following 
account  at  6%  : — 

The  National  Saving  Institution 

In  account  with  Porter  A.  Florence. 


1867. 

Jan. 

2 

a 

17 

<( 

27 

Feb. 

6 

<« 

7 

To  Cash 

By 
To 
By 


To 


Dr.  Amts. 

Cr.  Amts. 

Days. 

Daily  Balance. 

300 

00 

100 

00 

250 

00 

150 

250 

00 
00 

250 

00 

94 


INTEREST    ACCOUNTS. 


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W 
J*, 
'3 
P 

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©  ©       ©       ©           o 

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tH          £~         "H*  C5 
CO  i-( 

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B 

s  a-  s  s  lis  ^^§ 

PARTIAL    PAYMENTS.  95 


PARTIAL  PAYMENTS. 

185.  Partial  Payments  are  payments  made  a-  different 
times  of  part  of  a  Note,  Bond,  or  other  obligation,  and  should 
be  indorsed  upon  the  back  of  it. 

186.  When  a  partial  payment  is  made  "before  the  debt  is 
due,  it  cannot  be  apportioned  part  to  the  debt  and  part  to 
the  interest ;  but  interest  is  allowed  on  the  payment  as  well 
as  on  the  principal  to  the  time  the  debt  becomes  due. 

187.  Interest  is  not  allowed  to  form  part  of  the  principal, 
so  as  to  carry  interest. 

188.  The  following  rule  for  computing  interest  when  partial 
payments  have  been  made  has  been  adopted  by  the  Supreme 
Court  of  the  United  States,  and  by  New  York,  Massachusetts, 
and  most  of  the  other  States  of  the  Union,  and  is  called 

THE    UNITED    STATES   RULE. 

I.  The  rule  for  casting  interest  when  partial  payments  have  been 
made,  is  to  apply  the  payment,  in  the  first  place,  to  the  discharge 
of  the  interest  due. 

II.  If  the  payment  exceeds  the  interest,  the  surplus  goes  towards 
discharging  the  principal,  and  the  subsequent  interest  is  to  be  com- 
puted on  the  balance  of  principal  remaining  due. 

III.  If  the  payment  be  less  than  the  interest,  the  surplus  of  in- 
terest must  not  be  taken  to  augment  the  principal ;  but  interest  con- 
tinues on  the  former  principal  until  the  period  when  the  payments, 
taken  together,  exceed  the  interest  due,  and  then  the  surplus  is  to 
be  applied  towards  discharging  the  principal,  and  interest  is  to  be 
computed  on  the  balance  as  aforesaid. 

Decision  of  Chancellor  Kent,  Johnson's  Chancery  Rep.,  vol.  i.  p.  17. 

Or, 

189.  Apply  whatever  payments  may  be  made  to  the  discharge 
of  the  interest  then  due,  and  the  surplus,  if  any,  to  the  dis- 
charge of  the  principal. 

Note.— The  principal  remains  unaltered  when  the  payment  is  less  than 
the  interest  at  the  time  due. 


96  PARTIAL    PAYMENTS. 

190.  It  will  be  perceived  that,  by  the  above  rule,  if  a  person 
owing  the  debt  makes  a  payment  less  than  the  interest,  he  loses  the 
use  of  it  until  the  time  when  the  sum  of  the  payments  exceeds  the 
interest. 

For  instance,  the  interest  on  $1000  is  $5  per  month.  If  $5  per 
month  is  paid,  at  the  end  of  the  year  $1000  would  still  be  due,  while 
the  interest  on  the  payments,  $1.65,  would  be  lost. 

191.  The  Connecticut  rule  differs  from  the  United  States  rule 
only  in  this  respect,  that  if  a  payment  greater  than  the  interest  at 
the  time  due  be  made  before  the  principal  has  been  on  interest  one 
year,  the  person  making  it  is  allowed  interest  on  it  to  the  end  of  the 
year.  If  settlement  be  made  within  one  year,  interest  is  allowed  on 
the  payments  from  the  time  they  are  made  to  the  time  of  settlement. 


EXAMPLES. 

1.  A  bond  was  given  for  $1500.  dated  July  1st,  1863,  pay- 
able 1  year  after  date,  with  interest.  The  following  indorse- 
ments appear  on  the  bond  : — 

July  1st,  1864,  Received  Fifty  Dollars. 

Jan.  1st,  1866,         "        One  Thousand  Dollars. 

How  much  was  due  at  the  time  of  settlement,  July  1st,  1866  ? 

Original  sum  named  in  the  bond,  $1500.00 

Interest  from  July  1st,  1863,  to  July  1st,  1864,      $90. 
First  payment,  a  sum  less  than  interest,  50. 

la 

Interest  from  July  1st,  1864,  to  Jan.  1st,  1866,      135. 

175. 
Second  payment,  a  sum  greater  than  interest,      1000.  825.00 

Balance  for  new  principal,  675.00 

1   Interest  from  Jan.  1st,  1866,  to  July  1st,  1866,  20.25 

Amount  of  principal  and  interest  due  July  1st,  1866,  $695.25 


2.     $3500.  New  York,  Aug.  17,  1862. 

For  value  received,  I  promise  to  pay  to  Henry 
L.  Barnes,  or  order,  on  demand,  Three  Thousand  Five  Hun- 
dred Dollars,  with  interest.  Robt.  H.  Wilson. 

Indorsements.  March  17th,  1863,  One  Hundred  Dollars.  July 
17th,  1863,  Fifty  Dollars.  Nov.  17th,  1863,  Three  Hundred  Dollars. 
Feb.  17th,  1864,  Fifteen  Hundred  Dollars. 

How  much  remains  due  August  17th,  1864? 


PARTIAL    PAYMENTS.  97 

192.  As  it  is  customary  among  merchants  to  settle  their 
accounts  yearly,  or  oftener,  the  following  rule  is  much  used 
by  them,  and  is  called 

THE    MERCHANTS'    RULE. 

I.  First  find  the  interest  on  the  principal  fi  om  the  time  it 
becomes  due  to  the  time  of  settlement,  and  add  it  to  the  prin- 
cipal. 

II.  Find  the  interest  on  each  payment  from  the  time  it  was 
made  to  the  time  of  settlement,  and  add  the  sum  of  the  interest 
thus  found  to  the  sum  of  the  payments. 

III.  Deduct  the  sum  of  the  payments  and  interest  thereon 
from  the  amount  of  principal  and  interest,  and  the  difference 
will  be  the  balance  due. 

Note. — This  is  substantially  the  same  as  the  First  Method  for  finding 
interest  on  Accounts  Current.     (See  Art.  182.) 

EXAMPLES. 


1.      $600.  Philadelphia,  June  12,  1865. 

For  value  received,  on  demand,  I  promise  tc 
pay  to  the  order  of  Andrew  W.  Dawson,  Six  Hundred  Dol- 
lars, with  interest,  without  defalcation. 

Chas.  C.  Runyon. 

Indorsements. 
August  12th,  1865,  Received  One  Hundred  Dollars. 
November  12th,  1865,     "        Two  Hundred  and  Fifty  Dollars. 
January  12th,  1866,        "       One  Hundred  and  Twenty  Dollars. 
How  much  was  due  February  12th,  1866? 


Principal, 

$600.00 

Int.  from  June  12th,  1865,  to  Feb.  12th,  1866* 

8  mos., 

24.00 

Amount  of  note  to  Feb.  12th,  1866, 

624.00 

First  payment,  Aug.  12th,  1865, 

$100.00 

Interest  6  months, 

3.00 

Second  payment,  Nov   12th,  1865, 

250.00 

Interest  3  months, 

3.75 

Third  payment,  Jan.  12th,  1866, 

120.00 

Interest  1  month, 

.60 

Amount  of  payments  and  interest, 

477.35 

477.35 

Balance  due  February  12th,  1866,  $146.66 


98 


INTEREST   TABLE. 


2.     $350.  Cleveland,  May  9,  1865. 

Six  months  after  date,  I  promise  to  pay  to  the 
order  of  James  Brown  &  Co.,  Three  Hundred  and  Fifty  Dol- 
ors, value  received.  Edward  S.  Long. 

Indorsements. 

July  12th,  1866,  Received  Seventy-Five  Dollars. 
Oct.  27th,  1866,         "         Two  Hundred  Dollars. 

How  much  was  due  Jan.  3d.  1867  ? 


TABLE 

Showing  in  how  many  YEARS  a  given  principal  will 
double  itself. 


AT   COMPOUND   INTEREST. 

AT  SIMPLE 
INTEREST. 

BATE. 

Compounded 

Compounded 

Compounded 

Yearly. 

Half-Yearly. 

Quarterly. 

1 

100. 

69.666 

69.487 

69.400 

1* 

66.66 

46.556 

46.382 

46.298 

2 

50.00 

35.004 

34.830 

34.743 

21 

40.00 

28.071 

27.899 

27.812 

3 

33.33 

23.450 

23.278 

23.191 

3* 

28.57 

20.150 

19.977 

19.890 

4 

25.00 

17.673 

17.502 

17.415 

4* 

22.22 

15.748 

15.576 

15.490 

5 

20.00 

14.207 

14.036 

13.946 

5* 

18.18 

12.946 

12.775 

12.686 

6 

16.67    . 

11.896 

11.725 

11.639 

6* 

15.38 

11.007 

10.836 

10.750 

7 

14.29 

10.245 

10.075 

9.989 

71 

13.33 

9.585 

9.914 

9.328 

8 

12.50 

9.006 

8.837 

8.751 

8* 

11.76 

8.497 

8.346 

8.241 

9 

11.11 

8.043 

7.874 

7.788 

9* 

10.52 

7.638 

7.468 

7.383 

10 

10.00 

7.273 

7-  + 

7-  + 

AVERAGE    OF    PAYMENTS.  99 


AVERAGE   OF   PAYMENTS. 

193.  The  average  of  several  numbers  is  that  number  each 
would  be  if  their  sum  was  divided  equally.  Thus,  the  average 
number  of  yards  in  four  pieces  of  cloth,  one  containing  24 
yards,  one  36  yards,  one  38  yards,  and  one  42  yards,  is  35 
yards.  The  total  number  of  yards  equals  140,  which,  divided 
by  the  number  of  pieces,  equals  35, — the  average  number 
of  yards  in  each  piece. 

194.  Average   or    Equation    of    Payments    is   the 

method  of  finding  the  time  when  the  payment  of  several 
sums,  due  at  different  times,  may  be  made  at  once,  without 
loss  of  interest  to  either  party. 

195.  Accounts  are  settled  both  by  the  methods  given  in 
Interest  Accounts  and  by  averaging.  When  several  bills  of 
goods  are  sold  on  credit,  and  become  due  on  different  dates, 
instead  of  settling  each  bill  separately  as  it  becomes  due,  it  is 
customary  to  average  the  time,  and  settle  the  amount  of  all 
the  bills  at  the  averaged  time.  This  saves  the  labor  of  com- 
puting interest  on  the  several  bills. 

196.  When  all  the  amounts  are  alike,  the  average  time  is 
found  by  adding  the  different  terms  of  credit  together  and 
dividing  their  sum  by  the  number  of  the  amounts.  This, 
however,  is  seldom  the  case,  and  other  rules  have  been  found 

necessary. 


197.  To  find  the  average  time  when  all  the  terms  of  credit 
begin  at  the  same  time. 

Rule. — Multiply  each  amount  by  its  term  of  credit,  and 
divide  the  sum  of  the  several  products  by  the  sum  of  the  debts  ; 
the  quotient  will  be  the  average  time  of  credit. 


100  AVERAGE    OF    PAYMENTS. 

EXAMPLES.    , 

1.  A  merchant  purchases  goods,  January  6th,  amounting 
to  $900:  $300  payable  in  6  months,  $300  in  8  months,  $300 
in  10  months.  When  may  the  whole  be  paid  without  loss  to 
either  party  ? 

$300  for  6  months  =  1800  for  1  month, 
300   "    8       "       =2400    «     " 
300   "10       «       =  3000    "     " 

900  )7200    "     «     Ans.  8  months. 

$900  at  the  different  terms  of  credit  equals  $7200  for  1  month,  or 
as  many  months  as  $900  is  contained  times  in  $7200,  which  is  8 
times.  Therefore,  if  the  merchant  gives  his  note  payable  8  months 
after  January  6th,  it  will  be  equivalent  to  giving  three  notes  payable 
according  to  the  terms  of  credit  first  proposed. 

Note. — If  the  result  contains  a  fraction  less  than  a  day,  reject  it;  if  it 
is  more,  add  one  to  the  number  of  days.  Also,  when  the  cents  are  less 
than  50,  disregard  them ;  when  more,  call  them  $1. 

198.  The  accuracy  of  the  above  rule  has  been  questioned. 
The  author  of  this  book  has  in  his  possession  eighteen  differ- 
ent Arithmetics,  some  of  them  excellent  ones,  in  which  the 
rule  is  stated  to  be  erroneous.  The  following  example  is 
generally  used  to  illustrate  its  inaccuracy  : — 

"If  a  man  owes  me  $200,  $100  payable  now  and  $100  pay- 
able  in  2  years,  what  is  the  equated  time  ?     Ans.  1  year." 

It  is  said  that  this  is  incorrect,  because  I  lose  the  interest 
on  $100  for  1  year,  which  is  $6;  but  for  the  other  hundred 
I  gain  only  the  true  discount,  $5.66-f-,  making  a  difference 
of  nearly  34  cents. 

Or,  for  the  first  payment  I  should  receive  $100  and  interest 
for  1  year,  which  is  $106;  and  for  the  $100  paid  1  year  be- 
fore it  is  due,  I  should  receive  the  present  worth  of  $100, 
which  is  $94.33||,  making  a  total  of  $200.33§J,  or  34  cents 
more  than  I  receive  by  the  usual  method. 

The  fallacy  is  in  supposing  that  $5.66  is  all  that  I  gain  for 
the  $6  which  I  lose;  for  if  I  receive  the  discount  1  year  be- 
fore it  is  due,  it  is  clear  that  I  gain  the  interest  on  it  for  1 
year ;  aid  the  interest  on  true  discount  is  always  equal  to  the 


AVERAGE    OF    PAYMENTS.  101 

difference  between  true  discount  and  interest.     Interest  on 
$5.66  for  1  year  =  34  cents ;   $5.66  +  .34  =  $6.00. 

Again,  if  I  am  not  paid  the  $100  due  now  until  2  years 
have  elapsed,  I  ought  to  receive  as  interest  $12 ;  if  I  receive 
$200  at  the  end  of  the  first  year,  I  gain  the  interest  on  $200 
for  1  year,  which  is  $12,  the  same  as  before.  Interest  on 
$200  for  1  year  is  the  same  as  interest  on  $100  for  2  years. 

199.  The  following  has  been  given  as  the  true  rule  for  the 
Equation  of  Payments: — 

"Find  the  present  wortli  of  each  debt,  ther^find  the  time  at 
which  the  sum  of  the  present  worths  will  amount  to  the  sum  of 
the  debts;  this  gives  the  true  time." 

EXAMPLE   CALCULATED   BY  THE   "TRUE  RULE." 
Interest  at  4  per  cent. 

Amount.  Time.  Present  Worth. 

1080  2  years  1000 

6960  4     "  6000 

8040  7000 

7000 

1040  disc't.     Interest  on  $7000  for  1  year,  $280. 

280)1040(3  yrs.  8$  mos. 

For  $7000  to  gain  $1040  will  require  3  yrs.  8  mos.  174 
days. 

SAME    EXAMPLE. 


Interest  at  Jfi  per  cent. 

Amount. 

Time.                      Present  Worth. 

1080. 
6960. 

2  years                      600. 
4     «                        2676.92 

8040.  3276.92 

3276.92 


4763.08  disc't.     Interest  on  $3276.92  for  1  year  =  1310.77. 
1310.77)4763.08(3  yrs.  7  mos.  18  days. 

Pifference  in  results,  29  days. 
9* 


102  AVERAGE    OF    PAYMENTS. 

As  the  rate  of  interest  ought  not  to  affect  the  result,  the  accuracy 
of  this  "true"  rule  is  questionable.  Even  if  it  were  correct,  the 
amount  of  labor  required  to  find  the  average  time  by  this  method  is 
sufficient  to  prevent  it  from  coming  into  general  use. 

TJie  present  worth  is  not  in  exact  proportion  to  the  time  and 
amount  due.  The  true  discount  of  $500  for  1  year  is  not  the 
same  as  the  discount  of  $100  for  5  years. 

MISCELLANEOUS   EXAMPLES. 

1.  If  A  lends  B  $300  for  4  months,  how  long  ought  B  to 
lend  A  $600,  to  equal  the  favor?  Ans.  2  months. 

2.  If  I  owe  $400,  payable  in  6  months,  and  pay  S100  im- 
mediately, how  long  may  I  keep  the  balance  as  an  equivalent? 

Ans.  8  months. 

3.  A  man  bought  goods  at  different  times  to  the  amount  of 
$10,000,  which  are  due  per  average  July  1st.  He  wishes  to 
give  4  notes  in  payment,  due  1  month  apart.  When  ought 
they  to  mature,  to  equal  the  average  ? 

Ans.   May  15th,  June  15th,  July  15th,  Aug.  15th. 

200.  To  find  the  average  time  when  the  credits  begin  at 
different  times. 

Rule  I. — Find  the  date  when  each  debt  becomes  due. 
(See  Time  Tables.) 

Find  the  time  intervening  between  the  earliest  of  these 
dates  and  the  date  of  each  succeeding  amount. 

Multiply  the  amoun  t  first  due  by  0. 

Multiply  each  succeeding  amount  by  the  time  intervening 
between  the  earliest  date  and  the  time  the  amount  becomes  due. 

Divide  the  sum  of  the  products  by  the  sum  of  the  debts;  the 
quotient  will  be  the  average  time  required. 

Add  this  average  time  to  the  day  of  maturity  of  the  amount 
first  falling  due,  for  the  day  of  payment. 

Taking  the  time  from  the  date  of  maturity  of  the  amount 
first  due,  and  the  terms  of  credit  as  extending  to  the  dates 
when  actually  due,  makes  the  process  similar  to  that  of  the 
preceding  rule. 


AVERAGE    OF    PAYMENTS.  103 

Note. — When  a  purchase  is  made  for  cash,  it  is  due  on  the  day  of  the 
purchase. 

When  the  term  of  credit  is  the  same  for  each  amount,  lahor  may  be 
saved  by  averaging  the  dates  of  the  purchase  and  adding  the  term  of 
credit  to  the  average  date  so  found.  When  all  the  debts  have  the  same 
term  of  credit  except  one  or  two  amounts  which  have  no  credit,  add  inter- 
est to  those  amounts  for  the  general  term  of  credit,  and  then  average  as 
before.     Eor  finding  the  time,  see  Interest  ;  also  Time  Table. 


EXAMPLES. 

1.  Kequired  the  time  when  the  amount  of  the  debts  as 
below  stated  becomes  due  per  average. 


Date  of  *„,„„„*  Time  xxru™  a„~ 

Purchase.  Amount.  Credit  When  due. 

Jan.    6,  $300  6  mos.  July    6. 

Apr.  10,  200  6     "  Oct.  10. 

May    7,  400  3     "  Aug.    7. 


Time  from. 
July  6  to  Aug.  7, 

32  days. 
July  6  to  Oct.  10, 

96  days. 


Statement  arranged. 


Due. 

Amount. 

July    6, 
Aug.   7, 
Oct.  10, 

300 
400 
200 

Time  (in  days).  Product. 

0  00000 

X         32  12800 

X        96  19200 

900  ) 32000 (35$ 

Ans.  36  days  from  July  6th  is  August  11th. 


201.  ABBREVIATED    METHOD. 

The  cents  and  dollars  may  be  disregarded,  in  averaging, 
without  any  important  change  in  the  result. 


EXAMPLE. 


Due. 

Amount. 

Time. 

Amount, 
omitting  dolls,  and  cents. 

Product. 

Jan.  5, 

$372.50 

0 

X     $37 

= 

000 

"  15 

264.25 

10 

X       26 

3=5 

260 

«  25 

227.50 

20 

X       23 

-= 

460 

"  30 

329.10 

25 

X       33 

= 

825 

-t 

119 

)1M5(1*H* 

104 


AVERAGE    OF    PAYMENTS. 


USUAL    METHOD. 

372.50  X  0  =  000000 
264.25  X  10  =  264250 
227.50  X  20=455000 
329.10  X  25  =  822750 


1193.35  )1542000(12ifl|9f§. 

Ans,  Jan.  18th,  by  both  methods,  the  difference  being  only 
about  Tf  ^  of  a  day. 

202.  By  Interest. — Find  the  interest  on  each  amount  for 
the  time  obtained  as  be/ore ;   then 

Find  hoio  long  it  will  take  for  the  whole  debt  to  gain  that 
amount  of  interest;  the  result  will  be  the  average  time. 

Note. — The  equated  time  will  be  the  same,  whatever  may  be  the  rate 
of  interest :  we  can,  therefore,  take  that  rate  which  is  most  convenient 
Interest  tables  can  also  be  profitably  used. 


EXAMPLE    UNDER   RULE   I. 


Due. 

Amount. 

Days. 

Lnt.  at  Qf0. 

July    6, 

300 

0 

000 

Aug.  7, 

400 

32 

2.133 

Oct.  10, 

200 

96 

3.200 

$900  $5,333 

Interest  on  $900  for  1  day  =  .150. 
For  $900  to  gain  5.333  requires  ($5,333  -~  150)  35-^  days. 
36  days  from  July  6th  =  Aug.  11,  Ans.  as  before. 

2.  Calculate  the  above  at  the  rate  of  12  per  cent. 

3.  When  shall  a  note  to  settle  the  following  account  be 
made  payable  ? 

Henry  Field 

To  James  L.  Edwards  Dr. 


1867. 

' 

Mar. 

3 

To  Mdso  @  3  mos., 

as  per  bill  rendered, 

250 

00 

Apr. 

4 

"      "          30  days, 

II              II                  (1 

100 

00 

<< 

16 

"      "          60    " 

II              II                  (( 

300 

00 

May 

1 

«      "          60    " 

II            a               a 

420 

00 

1070 

00 

AVERAGE    OP    PAYMENTS. 


105 


Dae. 

Amount. 

Time.          Int.  at  12  per  cent. 

May     4, 

100 

0                        000 

June    8, 

250 

30                2.500 

June  15, 

300 

42                4.200 

June  30, 

420 

57                7.980 

For  $1070  at  12 ) 

&   to  gain      14.680    will    require 

41  days;  41  days  from  May  4th  is  June  14th. 

By  taking  ^  of  the  number  of  days  as  a  multiplier,  interest  at  12^ 
for  1  day  on  $1070  =  .356§. 

203.  ABBREVIATED    METHOD,  BY   INTEREST. 

Labor  is  saved  by  the  use  of  the  following  rule  in  finding 
the  time  when  due. 

Rule. —  Count  the  time  from  the  FIRST  day  of  the  first 
month  given. 

Set  opposite  each  month  the  number  of  months  intervening 
between  it  and  the  first  month. 

This  number  added  to  the  term  of  credit,  with  the  day  of 
the  month  opposite  to  which  it  is  set,  will  give  the  time  for 
which  to  calculate  interest. 

TJien  calculate  interest  for  the  months  and  days  thus  found, 
at  12  per  cent.,  in  the  same  manner  as  in  the  previous  rule. 


Date  of  Sale. 
Jan.      6, 
Feb.   12, 
Mar.  18, 


EXAMPLE. 

Time  of  Credit. 

3  mos. 

4  " 
3  " 


Amount. 

$300 
400 
250 


Amount 

$300 
400 
250 

$950 


No.  of  Months 
from  1st  mo. 


STATEMENT. 

Total  Time, 
mos.  days. 

3      6 
5    12 
5    18 
Total  Int. 


Int.  at  12  per  cent. 

.600  =  Int.    6  days. 


9.000=    ' 

•      3  mos. 

1.600=    ' 

<    12  days 

20.000=    ' 

!      5  mos. 

1.500=    < 

'    18  day a 

12.500=    < 

'      5  mos. 

45.200 


106  AVERAGE    OP    PAYMENTS. 


Interest  on  amount  of  debt,  $950,  for  1  mo.  @  12%  —$9.50. 
9.50)4520(4  mos. 
3800 

720 

30  days  in  a  month. 


950)21600(22fo  days. 

Average  time,  4  mos.  23  days,  which,  counted  from  Jan.  1st,  gives 
May  23d,  Ans. 

BY   USUAL   METHOD. 


Lmount. 

When  due. 

Days. 

Product. 

$300 

Apr.     6 

0 

000 

400 

June  12 

67 

26800 

250 

«    18 

73 

18250 

950  950)45050(47  days. 

47  days  counted  from  April  6th,  gives  May  23d,  as  before. 

By  the  abbreviated  method,  all  the  labor  performed  appears  in 
the  operation ;  but  in  the  usual  method  only  a  part  of  the  work  is 
written. 

The  abbreviated  method  is  used  to  a  considerable  extent  in  New 
York,  Philadelphia,  and  Boston,  on  account  of  the  labor  saved  in 
counting  time  and  in  reckoning  interest.  Some  have  claimed  that 
results  may  be  obtained  by  this  method  with  greater  facility  than 
by  the  use  of  Equation  Tables. 

In  some  instances,  the  result  will  not  exactly  agree  with 
that  obtained  by  the  use  of  days  for  the  time  between  the 
dates  when  due,  from  the  fact  that  some  months  contain  more 
days  than  others  j  but  in  ordinary  cases  the  difference  will 
be  but  a  trifle,  while  the  labor  of  averaging  is  very  much 
diminished.  The  correct  time  may  be  obtaiued  by  adding 
to  the  total  time  one  day  for  every  month  intervening  be- 
tween the  first  day  and  the  day  of  maturity  which  contains 
31  days. 

2.  Bought  goods  as  follows  : — 

Jan.    8,  1867,.        $250  @  3  mos.  credit. 
Feb.  13,      "  360  "   4    « 

Mar.   6,      "  125  "  60  days      " 

What  is  the  average  date  of  payment  ? 


AVERAGE    OF    PAYMENTS. 


107 


Average  the  following  examples  by  each  of  the  preceding 
rules. 

3.  A  merchant  bought  goods  as  follows  : — 

Sept.    5,  1867,  a  bill  of  $200  on  a  credit  of  6  mos. 
Oct.    10,     "  "  500  "  3    " 

Nov.  11,     "  "  350  "  60  days. 

Dec.     5,     "  "  425  for  cash. 

What  is  the  average  date  for  the  payment  of  the  whole  ? 

4.  John  E.  Lewis  purchased  goods  of  Isaac  S.  Smyth  &  Co. 
to  the  amount  of  $5000,  $1250  to  be  paid  June  2d,  1868, 
$1000  to  be  paid  July  5th,  $2000  to  be  paid  Aug.  15th; 
the  balance,  $750,  will  become  due  Aug.  30th.  At  what 
date  must  a  single  note  for  the  whole  amount  be  drawn,  pay- 
able in  3  mos.,  that  it  may  become  due  at  the  average  date? 

5.  Purchased  goods  of  Cragin  &  Co.,  as  stated  below : — 
Jan.    3,  1868,  a  bill  of  $375.25  on  3  mos.  credit. 

"  562.25 

250.00 

100.00 
«  225.75 

322.50 
When  shall  a  note  for  the  whole  be  made  payable  ?     ■ 

6.  Bought  of  Woodman  and  Hammett  as  follows : — 

Dec.  10, 1867,  a  bill  of  $175.25  @  4  mos. 
«     15,     "  "  237.50    "        « 

«     31,     "  "  150.00    "        « 

Jan.    4,  1868,      "  325.00  for  cash. 

What  is  the  average  date  of  payment?     Ans. 

7.  Purchased  goods  as  follows  : — 

Dec.  10,  1867,  a  bill  of  $325.00  at  3  mos. 

Jan.  15,  1868,        "  450.75  at  60  days. 

Jan.  20,     «    '        "  500.00  at  3  mos. 

Feb.    2,     "  "  750.25  at  3  mos. 

Feb.  15,     "  "  600.00  at  3  mos. 

What  is  the  average  date,  and  what  are  the  dates  of  4  notes 
drawn  at  60  days  each,  payable  one  month  apart,  to  be  equiva- 
lent to  the  average  date  ?  Ans. 


u 

10,     « 

u 

15,     » 

u 

20,     « 

a 

24,     « 

a 

29,     « 

108  AVERAGE    OF   ACCOUNTS. 


AVERAGE   OF   ACCOUNTS, 

OR    COMPOUND    EQUATION. 

204c.  In  the  settlement  of  accounts  it  is  frequently  desirable 
to  know  when  the  balance  of  an  account  may  be  paid,  so  that 
no  interest  need  be  calculated  and  yet  have  neither  party 
suffer  loss.  For  instance,  a  commission  merchant  sells,  at  a 
credit  of  6  months,  goods  for  a  consignor  amounting  to 
$2000,  the  charges  on  which  are  $500,  due  at  the  time  of 
sale.  Instead  of  remitting  $1500,  the  balance  of  account,  as 
soon  as  the  cash  for  the  goods  is  received,  the  commission 
merchant  retains  it  until  the  interest  on  $1500  is  equal  to  the 
interest  on  $500  for  6  months;  and  as  $1500  is  three  times 
as  large  as  $500,  he  retains  the  balance  £  of  6  months,  which 
is  2  months.  This,  added  to  the  6  months'  credit,  gives  8 
months  from  the  day  of  sale  to  the  time  when  the  balance  of 
account  should  be  paid. 

205.  To  find  the  equated  time  for  the  settlement  of  an 
account  when  there  are  both  debit  and  credit  amounts. 

Rule  I. — 1.  Find  the  time  when  due  for  each  side  of  the 
account  separately. 

2.  Multiply  the  SMALLER  side  of  the  account  by  the  time 
between  the  two  dates  thus  found,  and  divide  the  product 
by  the  balance  of  the  account.  The  quotient  will  be  the  time 
to  be  counted  from  the  date  of  the  larger  side. 

If  the  LARGER  side  of  the  account  falls  due  LATEST,  count 
FORWARD  from  the  LATER  date. 

If  the  LARGER  side  of  the  account  falls  due  EARLIEST, 
count  BACK  from  the  EARLIER  date. 

EXAMPLES. 

1.  When  shall  a  draft  for  the  settlement  of  the  following 
account  be  made  payable? 


Dr. 


AVERAGE    OF   ACCOUNTS. 

James  B.  Chauncey. 


109 


Cr. 


1866. 

July   1(5   To  Cash, 


1S66. 
600100!    Aug.    15    By  Mdse., 


1800  00 


600X30  =  18000  18000  -*- 1200  =  15 

15  days  counted  forward  from  the  later  date,  on  which  the 
larger  amount  falls  due,  gives  August  30th. 

The  interest  on  $600  for  30  days  equals  that  on  $18000  for  1  day; 
as  many  days  are  required,  therefore,  as  1200  is  contained  times  in 
18000,  which  are  15.  Then,  as  Mr.  Chauncey  has  retained  $600 
for  30  days,  to  get  an  equivalent,  we  retain  the  balance  of  account, 
$1200,  after  it  has  become  due,  for  fifteen  days,  which  brings  us  to 
August  30th. 

2.  Find  the  time  when  the  balance  of  the  following  account 
becomes  due: — 


Dr. 


James  B.  Chauncey. 


Cr. 


1866. 

Jan.    16  To 


1800  00     Feb.    15   By  Cash, 


600  00 


From  January  16th  to  February  15th  =  30  days. 

1800  —  600  =  1200,  Bal.  of  account.         Smaller  side,  $600  X  30  =  18000 
18000  -^  1200  —  15 

15  days  counted  back  from  January  16th,  the  earlier  date, 
gives  January  1st. 

In  the  above  account,  as  the  larger  sum  is  due  first,  it  is  evident 
the  balance,  $1200,  should  be  paid  long  enough  before  January  16th 
to  produce  interest  equal  to  the  interest  on  $600  for  the  time  be- 
tween January  16th  and  February  15th,  viz.,  15  days  before  January 
16th  ;  or,  30  -)-  15  =  45  days  before  February  15th.  When  the  bal- 
ance becomes  due  in  time  past,  interest  is  added  to  obtain  the 
amount  to  be  paid  at  the  time  of  settlement. 

3.  The  following  account  appears  on  my  Ledger : — 

Dr.  Samuel  T.  Hanson.  Cr. 


1859.  1859. 

Jan.    11    To  Mdse.  at  6  months,      17124    Jan.  Ill    By  Cash, 


When  should  the  balance  be  paid,  or  draw  interest? 

10 


100  00 


110 


AVERAGE    OF    ACCOUNTS. 


From    January  11th  to  July  14th,   counting  3   days  of 
grace,  the  time  when  the  debit  amount  is  due,  is  184  days. 

100  X  184  =  18400         171.24  — 100  =  71.24,  Bal.  of  account. 
18400  -*-  71.24  =  258+ 

Then  258  days  counted  forward  from  July  14th,  the  later 
date,  is  March  29th.  Ans.  March  29,  1860. 

4.  Find  the  average  of  the  following  account: — 
Dr.  •  Charles  D.  Carlton.  Cr. 


Mai-. 


To  Charges, 


1867. 

31 

31 

Mar. 

S 

4 

124 

By  Mdse.  @  8  mos. 

"       "       "  6    " 
"       "       "  6    " 


Credits  due  October  3d. 


Ans.  Oct.  10/13. 


206.  Rule  II. — Multiply  each  sum  by  the  number  of  days 
intervening  between  the  date  of  its  maturity  and  the  earliest 
day  on  which  any  sum  on  either  side  of  the  account  becomes 
due. 

Then  divide  the  difference  between  the  sum  of  the  products 
on  the  debit  and  the  sum  of  the  products  on  the  credit  side,  by 
the  balance  of  the  account. 

The  quotient  will  be  the  time  to  be  counted  FORWARD  from 
the  date  on  which  the  first  amount  becomes  due,  when  the  bal- 
ance of  the  account  and  the  difference  of  the  sums  of  the  pro- 
ducts are  BOTH  ON  THE  SAME  SIDE  of  the  account,  but  BACK- 
WARD from  the  same  date  if  they  are  on  OPPOSITE  SIDES  of 

the  account. 

EXAMPLE   I. 


BY    PRODUCTS. 


Dne. 
May  22, 
June    1, 
July  11, 


Amt. 
300 
150 
200 

G50 
420 


Days.  Product. 
0 

10      1500 

50  10000 

11500 
7300 


230  )  4200(l8& 


Due. 
May  27, 
June    6, 
July  10, 


Amt. 
200 
100 
120 

420 


Days. 

5 
15 
40 


Product 
1000 
1500 
4800 

7300 


AVERAGE    OF    ACCOUNTS.  Ill 

18  days  counted  forward  from  May  22d  gives  June 
9th.— Ans. 

The  discount  on  the  debit  side  of  the  account  equals  the 
interest  of  $650  for  the  time  which  is  equivalent  to  $11500 
for  1  day,  and,  starting  at  the  same  date,  the  discount  on  the 
credit  side  will  equal  the  interest  on  $420  for  the  time  equiva- 
lent to  $7300  for  1  day.  The  balance  of  the  account  can  re- 
main unpaid  as  long  after  May  22d  as  the  time  required  for 
it  to  equal  $4200  for  1  day,  which  is  18  days. 

EXAMPLE    II. 


BY   INTE 

Due.  Am't.  Days.  Int.  12  per  cent 

May  15,  2500      0 

"     24,  1300      9  3.900 

June  14,    400     24  2.800 

4200  .     6.700 

2400 


Due.  Am't.  Days.  Int.  12  per  cent. 

May  21,    400      6  .800 

"     30,  1200     15  6.000 

June    2,    800     18  4.800 

2400  11.600 

6.700 


4.900 


1800 
For  $1800  to  gain  $4.90  will  require  8£  days. 
Eight  days  counted  backwards  from  May  15th  is  May  7th. 

If  the  above  account  were  settled  May  15th,  $11.60  sho 
be  charged  as  interest,  and  $6.70  allowed  as  discount.  In- 
stead of  adding  $4.90  to  the  balance  of  the  account,  time  is 
counted  back  to  a  date  from  which  the  interest  on  the  balance 
of  the  account  will  equal  the  balance  of  interest. 

EXAMPLE    III. 

BY   ABBREVIATED    INTEREST    METHOD. 
CREDIT    SIDE    OF    THE    ACCOUNT. 

_.  „  _,.  .  ~     ...       .     ...  No.  mos.  from  Total  Time.       T  ,     ,10    .       _» 

Date.        Time  of  Credit.    Am't.  earnest  mo.      m08.days.        Int.  at  12  per  cent. 


t1?66'^*  o  ©inn         i  a     io  /  $4,000  int.  4  mos 

July  12,         3  mos.  $100        1  4     121*   40Q    „  12  ds. 

r  5.00C 
\  1.25C 
T24.50C 
J  1.05C 
{     .117 


Aug.  15,         Cash  250        2  2     15 1    *;«*>    \\  ,J  ™ ' 

24.500    "     7  moa. 
Oct.  10,         3  mos.  350        4  7     10-!    1.050    "     9  ds. 


$700 


1  day. 


Total  credit  interest,  $36,317 


112 


AVERAGE  OF   ACCOUNTS. 


DEBIT    SIDE    OF    THE    ACCOUNT. 


Date. 

Time  of  Credit. 

Am't. x 

so.  mos. 
earliest 

rom  lotai  Time.      -x  „.,  ,0 . 

„   j„,to        Int.  at  12  per  cent 

mo.    mos.  days.                       v 

1866. 
June  15, 

3  mos. 

$200 

0 

o     ,.  /    6.000  int.  3  mos 
6     10\    1.000    "  15  ds. 

Aug.    9, 

3    " 

400 

2 

-       0/ 20.000    "     5  mos. 
0       j\    1.200    "     9ds. 

Sept.  18, 

1  " 

300 

3 

.     lfl?  12.000    "     4  mos 
*     J^\    1-800    "  18  ds. 

900 
700 

Total  debit  int.     42.000 

u 

credit  "       36.317 

Bal.  of  account,  $200       ^  of  interegtj   ^m 

Interest  on  $200  for  1  month  =  $2. 

5.683  -i-2=2  months  25  days. 
2  months  25  days  forward  from  June  1st  is   Aug.  25th,  Ans. 

For  additional  practice,  average  the  examples  already  given 
by  each  of  the  different  methods. 


Average  the  following  Account  Sales  : — 

Account  Sales  of  Merchandise  for  joint  account  of  Newhall. 
Hart  &  Co.,  H.  Foster  &  Co.,  and  Ourselves. 


April 


Sold  Leonard  Barker  &  Co.,  @  6  mos. : — 
<@>  15  hhds.  Cuba  Sugar,  25,422  lbs.,  @ 

16c. 
<$>  32  half-chests  Oolong  Tea,  1805  lbs., 

tare  480  =  1325,  ©  1.10 

CHARGES. 

Fire  Ins.  on  $6000  @  U%,  $90.00 

Cooperage,  Weighing,  Labor,  &c,      17.37 
Com.  and  Guar,  on  $5525  @  5%,      276.25 

Net  proceeds  due  per  average. 


$5141 
i 

Paul  &  Thompson 


$4067 
1457 


$5525 


02 


E.  E.  New  York,  April  9th,  1866. 


Note  1. — Take  the  sales  as  the  credit  side,  and  the  charges  as  the  debit 
Bide. 

2.  Accounts  Sales  are  averaged  to  know  when  the  proceeds  may  be  paid 
without  charging  interest  to  either  part  v. 


AVERAGE   OF   ACCOUNTS. 


113 


Average  the  following  accounts  : — 
Dr.  Parker  Burton. 


Cr 


1866. 

1S66. 

—  z.- 

May 

22  j 

Tc  Mdso.  at  3  mos., 

500 

00 

May 

35 

By  Cash, 

300 

" 

■><r 

"      "       "        " 

250 

00 

June 

9 

"   Sundries, 

400 

June 

1 

"      "       "  30  days, 

150 

00 

July 

a 

"   Cash, 

100 

Ans.  Balance  $100,  due  per  average, 
DR.  E.  P.  Lossing  &  Co.  Cr. 


1866. 

1866. 

Mar. 

10 

To  Mdse.  (net) 

250 

75 

Mar. 

20 

By  Cash, 

250 

75 

" 

15 

"      "       @  3  mos., 

187 

50 

" 

2 

"   Draft  @  30  days, 

120 

00 

Apr. 

14 

"      "           4    " 

262 

25 

Apr. 

26 

"   Cash, 

150 

00 

May 

24 

"      "           3    " 

465 

GO 

May 

24 

'    Sundries, 

50 

00 

The  following  table  will  be  found  useful  when  averaging 
accounts. 

To  find  the  time  between  two  dates : — Look  on  the  left  for 
the  month  containing  the  earlier  date,  and  on  the  same  line, 
to  the  right,  for  the  month  containing  the  later  date :  the 
number  of  days  under  the  name  of  the  month,  or  the  number 
of  months  at  the  top  of  the  column,  will  give  the  required 
time,  if  both  dates  are  on  the  same  day  of  the  month.  If  the 
day  of  the  month  of  the  later  date  is  different  from  that  of  the 
earlier  date,  add  or  subtract,  as  the  case  may  be. 

To  find  the  day  which  is  a  given  number  of  days  after  a 
certain  date  : — Find  the  number  of  days  in  the  table,  opposite 
the  month,  containing  the  given  date  which  is  next  larger 
than  the  given  number  of  days ;  subtract  the  given  number 
of  days,  and  count  back  from  the  same  day  of  the  month 
above  the  number  taken,  as  the  day  of  the  month  of  the 
given  date. 

For  example,  to  find  the  day  which  is  144  days  after  June 
28th,  look  opposite  June  for  the  number  next  greater  than  144, 
which  is  153  in  Nov.     144  from  153  =  9;  and  0  days  back 
from  Nov.  28th  brings  us  to  Nov.  19th,  the  required  date. 
H  10* 


114 


TIME    TABLJ. 


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I 

MONEY.  115 

MONEY,  WEIGHTS,  AND  MEASURES. 

MONEY. 

207.  Money  is  value,  or  its  representative,  used  as  a  me- 
dium of  exchange  and  as  a  standard  of  measure. 

208.  The  word  money  is  derived  from  the  Latin  monelas, 
which  some  derive  from  monere,  to  "  admonish,"  to  "  inform," 
— the  stamp  on  a  coin  informing  the  holder  of  its  value.  The 
Latin  word  pecunia,  "  money,"  is  supposed  to  be  derived  from 
pecus,  "  a  sheep,"  because  in  early  times  sheep,  or  stamped 
skins,  were  used  in  place  of  money. 

209.  In  different  countries,  and  in  different  conditions  of 
society,  various  articles  have  been  made  to  serve  as  money. 
Homer  tells  us  the  armor  of  Diornede  cost  nine  oxen,  while 
that  of  Glaucus  cost  one  hundred ;  *md  the  oldest  Greek  coins 
were  stamped  with  an  ox, — intimating  the  previous  employ- 
ment of  cattle  as  money.  The  laws  of  the  ancient  Germans 
imposed  penalties  for  offences,  to  be  paid  in  cattle ;  while 
slaves  and  cattle — or  M  living  money,"  as  it  was  then  called 
— were  in  common  use  among  the  Anglo-Saxons.  The  Car- 
thaginians and  Spartans  employed  for  this  purpose  skins  and 
pieces  of  leather  marked  with  a  stamp.  In  Hindostan,  small 
shells  called  cowries  are  used  in  the  smaller  payments ;  they 
also  circulate  widely  in  Africa.  In  Abyssinia,  rock-salt,  in 
Iceland,  dried  fish,  and  among  the  North  American  Indians, 
the  belt  of  wampum,  is  used  as  money.  In  1776,  according 
to  Adam  Smith,  the  workmen  of  a  certain  Scottish  village 
carried  nails  as  money  to  the  baker's  and  to  the  ale-house. 

210.  Various  metals  have  been  used  :  the  Spartans  adopted 
iron  ;  the  ancient  Romans,  copper  j  the  Russians,  at  one  time, 
platinum ;  but  gold  and  silver  have  been  preferred  by  modern 
nations,  as  best  adapted  for  the  purposes  of  money,  for  the 
following  reasons : — 


116  MONEY. 

I.  Their  value  is  comparatively  uniform,  and  less  subject 
to  variations,  and  they  may  be  kept  or  used  without  much 
deterioration. 

II.  Their  nature  is  such  that  they  can  easily  be  iden- 
tified. 

III.  They  are  capable  of  division  or  combination  without 
loss  of  value. 

IV.  They  possess  great  value  in  small  compass,  and  are 
capable  of  being  easily  transported  from  place  to  place. 

Gold  and  silver,  in  their  purity,  are  soft,  easily  bent  or  in- 
jured, and  exposed  to  rapid  wear :  they  are  therefore  mode- 
rately hardened  by  the  admixture  of  an  alloy.  For  gold  coin 
both  copper  and  silver  are  employed  as  an  alloy;  and  the 
color  of  the  coin  inclines  to  yellow  or  red,  as  the  silver  or 
copper  may  predominate. 

£11*  Money  ig  either  re&l  or  imaginary.  Real  money  in- 
cludes all  coins, — such  as  dollars,  sovereigns,  and  the  like ; 
imaginary,  or  nominal  money,  is  that  which  does  nofc  exist  in 
specie, — such  as  mills,  pounds,  &c. 

212.  The  Moneys  of  Account  are  those  in  which  ac- 
counts are  kept,  and  include  imaginary  as  well  as  real  money; 
but  the  relations  of  the  denominations  are  not  susceptible  to 
fluctuations,  like  currency. 

213.  Paper  money  is  a  substitute  for  metallic  currency. 

214.  Aside  from  the  amount  in  actual  existence,  the 
rapidity  and  value  of  exchanges  affect  the  abundance  or 
scarcity  of  money.  Any  thing  which  dispenses  with  its  use 
diminishes  the  amount  of  circulating  medium  necessary  for  a 
community,  and  in  effect  is  the  same  as  adding  so  much  to 
the  currency.  The  accounts  of  merchants,  notes,  bills  of  ex- 
change, and  credits  generally,  are  of  this  nature. 

215.  When  two  kinds  of  money  are  in  circulation,  the  one 
of  leist  value  will  displace  the  other. 


MONEY.  1.17 

216.  The  term  Bullion  is  applied  to  uncoined  gold  or  sil- 
ver, and  includes  gold  dust,  amalgamations,  and  ingots,  or  bars. 

217.  Coin,  or  Specie,  is  metal  of  known  weight  and 
fineness,  stamped  for  the  purpose  of  being  used  as  money. 

218.  The  smallest  coin  is  believed  to  be  the  Turkish  para, 
weighing  from  1J  to  2 \  grains,  containing  a  small  portion  of 
silver,  and  its  value  is  one-thirtieth  of  our  cent.  The  smallest 
copper  coin  of  Europe  is  the  centime  of  Genoa,  weighing  four- 
teen grains,  and  worth  one-twelfth  of  our  cent.  The  ten- 
copeck  piece  of  Russia  is  equal  in  weight  to  4&  copper  cents ) 
a  copper  piece  of  1795  weighs  890  grains ;  about  as  heavy  as 
5£  copper  cents. 

219.  Currency  is  money  in  common  circulation,  whether 
coin  or  paper.     Agio  is  the  difference  between  currencies. 

220.  Billon  (from  the  French,  signifying  base  coin)  is 
the  name  of  a  mixture  having  a  small  proportion  of  silver 
combined  with  some  base  metal. 

221.  Tokens  are  coins  whose  intrinsic  value  is  below  that 
assigned  to  them  by  law,  and  are  not  a  legal  tender  above 
certain  small  amounts.  Coins  in  billon — the  nickel  cent,  and 
the  one,  two,  three,  and  five  cent  pieces  of  1866 — are  tokens. 
(See  Value  of  U.  S.  Coins.) 

RELATIVE  VALUES  OF  GOLD  AND  SILVER. 

222.  In  the  United  States,  as  15.988  to  1. 

"  England,  "  14.287  "  1. 

"  France,  "  15.50     "  1. 

«  Spain,  "  16.00     "  1. 

«  China,  "  14.25     "  1. 

223.  In  America  and  Great  Britain,  gold  is  the  standard 
of  value.  Silver  is  the  standard  of  value  in  France,  Belgium, 
Holland,  Austria,  and  the  Zollverein  States,  Russia,  and  the 
East  Indies.  Payments  made  in  China  are  either  in  silver 
dollars  or  silver  ingots. 


118  MONEY. 

224.  In  Great  Britain, 

A  pound  of  standard  gold  ii  fine  is  coined  into  £  46  14s. 
6c/.  =  £3  17s.  10£cZ.  per  ounce,  which  is  the  mint  price  for 
standard  gold,  and  is  equivalent  to  $18.94  per  ounce. 

A  pound  of  silver  (|J  fine)  is  coined  into  6Q  shillings  == 
5s.  6d.  per  ounce.     The  mint  price  is  5s.  per  ounce,  -f  J  nne- 

A  pound  of  copper  is  coined  into  24  pence. 

A  pound  of  bronze  of  1860,  95  parts  of  copper,  4  of  tin, 
and  1  of  zinc,  is  coined  into  48  penny  pieces,  or  80  half-pen- 
nies, or  160  farthings. 

225.  In  France, 

A  kilogramme  of  gold  is  coined  into  155  napoleons,  or  3100 
francs. 

A  kilogramme  of  silver  is  coined  into  200  francs. 

226.  The  standard  of  the  various  moneys  in  the  north  of 
Europe  and  Germany  is  the  Cologne  mark  weight,  Hamburg 
standard  of  fine  silver ;  that  is,  3608  grains  Troy. 

In  Sweden,  Norway,  Denmark,  and  Mecklenburg,  it  is 
coined,  when  alloyed  with  copper,  into  9£  silver-species, 
dalers  or  thalers. 

In  Russia,  into  13  silver  roubles. 

In  Prussia  and  Hanover,  into  14  thalers. 

In  the  Southern  States  of  the  Zollverein,  into  24£  gulden. 

In  Austria,  into  20  gulden. 

In  Hamburg  and  Lubeck,  into  35  marks  current. 

The  acts  of  Congress  of  1834  and  1843,  fixing  the  value 
of  certain  foreign  coins,  and  declaring  the  same  as  legal  ten- 
der, were  repealed  by  act  of  February  21,  1853. 

It  will  be  seen  in  the  following  table  that  the  half-dollar, 
and  smaller  silver  coins  issued  since  1853  are  worth  less,  in 
proportion,  than  the  silver  coins  issued  before  that  time. 

The  smaller  coins  are  designed  chiefly  for  the  purpose  of 
making  change,  and  are  not  a  legal  tender  above  certain  small 
sums.     (See  Legal  Tendeu.) 


COINS    OF    THE    UNITED    STATES. 


119 


TABLE 

Showing  the  weight  and  fineness  of  the  Coins  of  the  United 
States,  as  given  by  acts  of  Congress. 


GOLD. 


\\  or  .913f  fine. 

Standard  Weight. 

Pure  Gold. 

Coml.  Val. 

Eagle,  coined  before  1834 

270  grains 

247.5    grains 

$10.62 

*  " 

135      « 

123.75     « 

5.31 

j.  « 

67.5  " 

61.87     " 

2.65 

.900  FINE. 

Eagle  coined  since  1834 

258.     " 

232.2       " 

10.00 

i  " 

129.     " 

116.1       « 

5.00 

I     «                  «               «             M 

64.5  " 

58.05     M 

2.50 

1  Dollar  piece, 

25.8  " 

23.22     " 

1.00 

1  Double  Eagle, 

516.     » 

464.4       " 

20.00 

3  Dollar  piece, 

7.74  grains 
SILVER. 

69.66     " 

3.00 

Standard  Weight.    Pure  Silver. 

Coml.  VaL 

Dollar  before  1837,  and  shares 

in  proportion,      892.4  fine,       416.  grs. 

371.25    grs. 

$1.05 

Dollar  since  1837,  900  fine 

412.5  « 

371.25     " 

1.05 

£  "    '37  to  June,  '53,"     " 

206.25  grs.     185.625  grs. 

•52£ 

|  «      «               »       «     « 

103.125 

92.8125  « 

.26 

Dime  "               "       M     " 

41.25 

37.125    « 

.10* 

J   M     «                «       «     « 

20.625 

18.5625  " 

.05 

3  Cent  piece,  March,  1851, 

to 

March,  1853,  f  fine, 

12.375 

10.8 

.03 

£  Dollar  since  June,  1853, 

192. 

"       172.8 

.50 

(And  smaller  coins  in  proportion.) 

Old  Cent,  178  grains  copper. 
Cent  of  1866,     48 grs.     95%  copper,   3%  zinc,  and  2%  tin. 

2  "  piece  "        96  "        95         "  5%  nickel. 

3  "     "       "        32  "        75         "        25%     " 

5  "     "       "  5  grams,  or  77^^  grs.,  75%  copper,  25%  nickel. 


A  STATEMENT   OF   FOREIGN    GOLD   AND   SILVER   COINS. 

(Prepared  bt  the  Director  of  the  United  States  Mint.) 

Explanatory  Remarks. — The  first  column  of  the  Tables 
of  Foreign  Coins  embraces  the  names  of  the  countries  where 
the  coins  are  issued :  the  second   contains  the  names  of  the 


120  FOREIGN    GOLD    AND    SILVER    COINS. 

coin,  only  the  principal  denominations  being  given.  The 
other  sizes  are  proportional ;  and,  when  this  is  not  the  case, 
the  deviation  is  stated. 

The  third  column  expresses  the  weight  of  a  single  piece  in 
fractions  of  the  troy  ounce,  carried  to  the  thousandth,  and,  in 
a  few  cases,  to  the  ten-thousandth,  of  an  ounce.  The  method 
is  preferable  to  expressing  the  weight  in  grains  for  commercial 
purposes,  and  corresponds  better  with  the  terms  of  the  mint. 
It  may  be  readily  transferred  to  weight  in  grains  by  the  fol- 
lowing rule  : — Remove  the  decimal  point;  from  one-half  de- 
duct four  per  cent,  of  that  half  and  the  remainder  will  be 
grains. 

The  fourth  column  expresses  the  fineness  in  thousands, 
i.e.  the  number  of  parts  of  pure  gold  or  silver  in  1000  parts 
of  the  coin. 

The  fifth  and  sixth  columns  of  the  first  table  express  the 
valuation  of  gold.  In  the  fifth  is  shown  the  value  as  com- 
pared with  the  legal  content,  or  amount  of  fine  gold  in  our 
coin.  In  the  sixth  is  shown  the  value  as  paid  at  the  mint 
after  the  uniform  deduction  of  one-half  of  one  per  cent.  The 
former  is  the  value  for  any  other  purposes  than  recoinage, 
and  especially  for  the  purpose  of  comparison  ;  the  latter  is 
the  value  in  exchange  for  our  coins  at  the  mint. 

For  the  silver  there  is  no  fixed  legal  valuation,  the  law 
providing  for  changing  the  price  according  to  the  condition 
of  demand  and  supply.  The  present  price  of  standard  silver 
is  122 £  cents  per  ounce,  at  which  rate  the  values  in  the  fifth 
column  of  the  second  table  are  calculated.  In  a  few  cases, 
where  the  coins  could  not  be  procured,  the  data  are  assumed 
from  the  legal  rates,  and  so  stated. 

The  silver  purchased  for  coinage  will  be  paid  for  in  silver 
coins  of  the  United  States,  of  less  denomination  than  the  dol- 
lar; fine  silver,  136&  cents  per  ounce;  American  plate,  usual 
manufacture,  120  to  122  cents  per  ounce;  genuine  British 
plate,  125.8  cents  per  ounce. 


VALUE    OF   FOREIGN    COINS. 


121 


FOREIGN  GOLD   COINS. 


Australia 

Austria 

Belgium 

Bolivia 

Brazil 

Central  America 
Chili 

Denmark 

Ecuador 

England 

France 

H 

Germany,  North 


Germany,  South 

Greece  

Hindostan 

Italy  

Japan  

H 

Mexico 

Naples 

Netherlands 

New  Granada  ... 

«  a 

Peru 

Portugal 

Prussia 

Rome 

Russia 

Spain 

Sweden 

Tunis 

Turkey 

Tuscany 


DENOMINATION. 


Pound  of  1852 

Sovereign  of  1855-60 

Ducat 

Souverain 

New  Union  crown  (assumed) 

Twenty-five  francs 

Doubloon 

Twenty  milreis 

Two  escudos 

Old  doubloon 

Ten  pesos  

Ten  thaler 

Four  escudos 

Pound  or  sovereign,  new 

Pound  or  sovereign,  average 

Twenty  francs,  new 

Twenty  francs,  average 

Ten  thaler 

Ten  thaler,  Prussian 

Krone  (crown) 

Ducat 

Twenty  drachms 

Mohur 

Twenty  lire 

Old  cobang 

New  cobang 

Doubloon,  average 

Doubloon,  new 

Six  ducati,  new 

Ten  guilders 

.Old  doubloon,  Bogota 

Old  doubloon,  Popayan 

Ten  pesos,  new 

Old  doubloon 

Twenty  soles 

Gold  crown 

New  Union  crown  (assumed) 
Two-and-a-half  scudi,  new ... 

Five  roubles 

One  hundred  reals 

Eighty  reals 

Ducat 

Twenty-five  piastres 

One  hundred  piastres 

Sequin , 


Value 

Weight. 

Fineness. 

Value. 

after  De- 
!  duction  oi 
XA  per  ct. 

Price  paiij 

Oz.    Dec. 

at  Mint. 

0.281 

916.5 

$5  32.37 

$5.29.71 

0.256.5 

916 

4.85.58 

4.83.16 

0.112 

986 

2.28.28 

2.27.04 

0.363 

900 

6.75.35 

6.71.98 

0.357 

900 

6.61.19 

6.60.87 

0.254 

899 

4.72.03 

4.69.67 

0.867 

870 

15.59.25 

15.51.46 

0.575 

917.5 

10.90.57 

10.85.12 

0.209 

853.5 

3.68.75 

3.66.91 

0.867 

870 

15.59.26 

15.51.47 

0.492 

900 

9.15.35 

9.10.78 

0.427 

895 

7.90.01 

7.86.06 

0.433 

844 

7.55.46 

7.51.69 

0.256.7 

916.5 

4.86.34 

4.83.91 

0.256.2 

916 

484.92 

4.82.50 

0.207.5 

899.5 

3.85.83 

3.83.91 

0.207 

899 

3.84.69 

3.82.77 

0.427 

895 

7.90.01 

7.86.06 

0.427 

903 

7.97.07 

7.93.09 

0.357 

900 

6.64.20 

6.60.88 

0.112 

986 

2.28.28 

2.27.14 

0.185 

900 

3.44.19 

3.42.47 

0.374 

916 

7.08.18 

7.04.64 

0.207 

898 

3.84.26 

3.82.34 

0.362 

568 

4.44.0 

4.41.8 

0.289 

572 

3.57.6 

3.55.8 

0.867.5 

866 

15.52.98 

15.45.22 

0.867.5 

870.5 

15.61.05 

-15.53.25 

0.245 

996 

5.04.43 

5.01.91 

0.215 

899 

3.99.56 

3.97.57 

0.868 

870 

15.61.06 

15.53.26 

0.867 

858 

15.37.75 

15.30.07 

0.525 

891.5 

9.67.51 

9.62.68 

0.867 

868 

15.55.67 

15.47.90 

1.035 

898 

19.21.8 

19.12.2 

0.308 

912 

5.80.66 

5.77.76 

0.357 

900 

6.64.19 

6.60.87 

0.140 

900 

2.60.47 

2.59.17 

0.210 

916 

3.97.64 

3.95.66 

0.268 

896 

4.96.39 

4.93.91 

0.215 

869.5 

3.86.44 

3.84.51 

0.111 

975 

2.23.72 

2.22.61 

0.161 

900 

2.99.54 

2.9805 

0.231 

915 

4.36.93 

4.34.75 

0.112 

999 

2.31.29 

2.30.14 

11 


122 


VALUE    OF    FOREIGN    COINS. 


FOREIGN   SILVER  COINS. 


Austria 

M 

Belgium 

Bolivia 

Brazil 

Canada 

Central  America. 
Chili 

Denmark 

England 

France  

Germany,  North. 

Germany,  South. 

Greece 

Hindustan 

Japan  

Mexico 

Naples 

Netherlands 

Norway  

New  Granada 

Peru 

Prussia 

Rome 

Russia 

Sardinia 

Spain , 

Sweden 

Switzerland 

Tunis  

Turkey  

Tuscany 


DENOMINATION. 


Old  rix  dollar 

Old  scudo 

Florin  before  1858 

New  florin 

New  Union  dollar 

Maria  Theresa  dollar,  1780 

Five  francs 

New  dollar 

Half  dollar 

Double  milreis 

Twenty  cents 

Dollar 

Old  dollar 

New  dollar 

Two  rigsdaler 

Shilling,  new 

Shilling,  average 

Five  franc,  average 

Thaler,  before  1857.. 

New  thaler 

Florin,  before  1857 

New  florin  (assumed) 

Five  drachms 

Rupee 

Itzebu 

New  Itzebu ... 

Dollar,  new 

Dollar,  average 

Scudo  

Two-and-a-half  guild 

Specie  daler 

Dollar  of  1857 

Old  dollar 

Dollar  of  1858 

Half-dollar,  1835-38 

Thaler  before  1857 

New  thaler 

Scudo  

Rouble 

Five  lire 

New  pistareen 

Rix  dollar 

Two  francs 

Five  piastres 

Twenty  piastres 

Florin 


Weigh!. 


Oz.  Deo. 

0.902 

0.836 

0.451 

0.397 

0.596 

0.895 

0.803 

0.643 

0.432 

0.820 

0.150 

0.866 

0.864 

0.801 

0.927 

0.182.5 

0.178 

0.800 

0.712 

0.595 

0.340 

0.340 

0.719 

0.374 

0.279 

0.279 

0.867.5 

0.866 

0.844 

0.804 

0.927 

0.803 

0.866 

0.766 

0.433 

0.712 

0.595 

0.864 

0.667 

0.800 

0.166 

1.092 

0.323 

0.511 

0.770 

0.220 


Thous. 

833 
■  902 
'833 

900 

900 

838 

897 


918.5 

925 

850 

908 

900.5 

877 

924.5 

925 

900 

750 

900 

900 

900 

900 

916 

991 

890 

903 

901 

830 

944 

877 


650 
750 
900 
900 

875 


750 

899 

898.5 

830 

925 


$1.02.27 

1.02.64 
51.14 
48.03 
73.01 

1.02.12 
98.04 
79.07 
39.22 

1.02.53 
18.87 

1.00.19 

1.06.79 
9S.17 

1.10.65 
22.96 
22.41 
98.00 
72.67 
72.89 
41.65 
41.65 
88.08 
46.62 
37.63 
33.80 

1.06.62 

1.06.20 
95.34 

1.03.31 

1.10.65 
97.92 

1.06.20 
94.77 
38.31 
72.68 
72.89 

1.05.84 
79.44 
98.00 
20.31 

1.11.48 
39.52 
62.49 
86.98 
27.60 


WEIGHTS    AND    MEASURES.  123 

WEIGHTS   AND   MEASURES. 

227.  The  weights  and  measures  used  by  the  different 
nations  throughout  the  world  have  been  derived  from  very 
imperfect  and  variable  standards.  Thus,  a  foot  was  the  length 
of  a  king's  foot,  and,  consequently,  varied  as  a  king  with  a  long 
foot  or  a  short  foot  happened  to  reign.  The  hand,  span,  cubit, 
or  fore-arm,  and  fathom,  or  length  of  the  two  arms  extended, 
all  varied  with  the  size  of  the  person.  Henry  I.,  King  of 
England,  declared  that  the  ell,  or  ulna,  or  yard,  should  be  the 
length  of  his  own  arm,  from  the  extreme  end  of  the  longest^ 
finger  to  the  middle  of  the  breast,  and  that  the  other  mea- 
sures should  be  raised  upon  this.  The  old  English  pound, 
which  was  the  legal  standard  of  weight  from  the  time  of  Wil- 
liam the  Conqueror  to  that  of  Henry  VII.,  was  derived  from 
the  weight  of  grains  of  wheat  gathered  from  the  middle  of 
the  ear,  and  well  dried,  32  (changed  in  later  times  to  24) 
grains  making  a  pennyweight,  or  the  weight  of  a  penny,  20 
pennyweights  an  ounce,  and  12  ounces  a  pound.  Henry  VII. 
introduced  the  troy  pound.  The  avoirdupois  pound  was  intro- 
duced during  the  reign  of  Henry  VIII. 

An  acre  was  as  much  land  as  a  yoke  of  oxen  could  plough 
in  a  day.     A  hyde  was  about  100  acres. 

228.  America,  England,  and  France  have  endeavored  to 
found  their  systems  of  weights  and  measures  upon  invariable 
or  natural  standards. 

The  standard  units  of  linear,  superficial,  and  solid  measures 
of  the  United  States  are  identical  with  those  of  Great 
Britain. 

STANDARD    OF    LENGTH. 

229.  The  standard  unit  of  length  is  the  yavd,  and  is  de- 
termined as  follows : — 

A  pendulum  vibrating  seconds  of  mean  time  in  the  latitude 
of  London,  in  a  vacuum  and  at  the  level  of  the  sea,  is  divided 


124  WEIGHTS    AND    MEASURES. 

into  39 J  ,393  equal  parts.    360,000  of  these  parts  are  equiva- 
lent to  the  length  of  the  standard  yard,  or  36  inches. 

STANDARD    OP    WEIGHT. 

230.  The  standard  unit  of  troy  weight  is  the  weight  of 
22.7944  cubic  inches  distilled  water  at  its  maximum  density, 
or  22.8157  cubic  inches  at  62°  Fahrenheit,  barometer  in  both 
cases  being  at  30  inches.     (See  Heat,  page  237.) 

The  avoirdupois  pound  contains  7000  troy  grains;  the  troy 
pound  contains  5760  grains.  The  avoirdupois  pound  is  equal 
'to  the  weight  of  27.7015  cubic  inches  of  distilled  water  at 
its  maximum  density,  or  27.7274  cubic  inches  at  62°  Fah- 
renheit. 

The  English  Imperial  weights  and  those  of  the  United 
States  are  identical. 

standards  of  capacity. 

231.  The  United  States  standard  unit  of  liquid  measure  is 
the  old  English  wine  gallon  of  231  cubic  inches,  and  con- 
tains 8.3389  lbs.  avoirdupois  of  distilled  water  of  39.83°  Fah- 
renheit, the  barometer  at  30  inches. 

The  Imperial  standard  gallon,  for  liquids  and  all  dry 
substances,  contains  10  lbs.  avoirdupois  distilled  water  62° 
Fahrenheit,  barometer  30  inches,  equal  to  277.274  cubic 
inches. 

The  United  States  standard  unit  of  dry  measure  is  the 
British  Winchester  bushel,  so  called  from  the  standard  being 
kept  at  Winchester.  It  is  a  cylinder  18 \  inches  in  diameter 
by  8  inches  deep,  and  contains  2150.42  cubic  inches,  or 
77.6274  pounds  avoirdupois,  of  distilled  water  at  its  maxi- 
mum density.  A  dry-measure  gallon  contains  2684  cubic 
inches. 

The  weights  and  measures  of  some  of  the  States  differ  from  those 
of  the  United  States.  For  the  French  system  of  weights  and  mea- 
sures, s?e  France,  page  132. 


UNITED    STATES    MONEY.  125 

UNITED    STATES. 

MONEY. 

10  mills  (m.)  as  1  cent,      ct. 
10  cents  =  1  dime,     d. 

10  dimes         =  1  dollar,  $. 
10  dollars       =  1  eagle,    E. 

232.  The  origin  of  the  symbol  $,  or  the  United  States  dollar  mark, 
has  been  ascribed  to  several  sources.  By  some  it  is  supposed  to  re- 
present the  U written  upon  the  S,  denoting  U.S.  (United  States). 
Some  think  it  is  a  modification  of  the  figure  8,  having  reference  to 
8  reals,  or  piece  of  Eight,  as  the  dollar  was  formerly  called  ;  others, 
that  it  represents  the  "  Pillars  of  Hercules,"  which  were  stamped  on 
the  Pillar  Dollar ;  and  others,  still,  that  it  is  a  combination  of  the 
Initials  P.  and  S.,  from  the  Spanish  Peso  Duro,  signifying  Hard 
Dollar.  As  it  is  used  in  Portugal  to  note  the  thousands'  place,  it 
is  probable  that  it  originated  in  that  country :  a  Mil-reis,  or  thou- 
sand reis,  is  written  thus,  1$000. 

STATE    CURRENCIES. 

233.  The  money  of  this  country  before  the  adoption  of  the  decimal 
currency  by  Congress  in  1786  was  in  the  denominations  of  pounds, 
shillings,  and  pence.  The  Colonial  notes  which  were  then  in  circu- 
lation had  depreciated  in  value ;  and  the  number  of  shillings  equi- 
valent to  a  dollar  at  that  time  are  given  in  the  following  table : — 

NEW   ENGLAND    CURRENCY. 

New  England  States,  Virginia,  \  $1  =  Gs.  =  72d. 
Kentucky,  and  Tennessee,      /       Is.  as  16|  cts. 

NEW    YORK    CURRENCY. 

New    York,    Ohio,    Michigan,  \  $1  =  85.  =  9Qd. 
and  North  Carolina,  /       Is.  =  12|  cts. 

PENNSYLVANIA    CURRENCY. 

Pennsylvania,      New     Jersey,  ">  $1  =  7s.  6^.  =  90c?. 
Delaware,  and  Maryland,       J        Is.  as  13^  cts. 

GEORGIA    CURRENCY. 

Georgia  and  South  Carolina,     $1  =s  4s.  8^.  =  56i. 

Is.  =214  cts. 
11* 


126  WEIGHTS    AND    MEASURES. 


WEIGHTS    AND    MEASURES. 

LINEAR   OR   LONG   MEASURE. 

12  inches  (in.)  =  1  foot  (ft.). 

36       "  =3       "       m  1  yard  (yd.). 

198     "  =16*   "       =  o£       "         =  lrod(r.). 

1920    "  =  660    "        =  220      "         =  40    "      =1  furlong  (F.). 

63360 "  -  5280 "       =  1760    "         =  320  "      =  8        "  =1  mile  (m.J 

69£  miles  (nearly)  =  1  degree  (deg.  °);  360  degrees  =  circumference  of  the  earth; 
6  feet  =  1  fathom ;  3.45  statute  miles  =  1  league ;  1  knot  or  geographical  mile  =  1}J 
statute  miles ;  4  inches  =  1  hand.    The  earth  revolves  at  about  1040  miles  per  hour. 


SURFACE    OR    SQUARE    MEASURE. 

144       sq.  inches  =  1  sq.  foot. 

1296  "         =9  "   =  1         sq.  yard. 

39204  "         =  2724;         "   =  30*  "    =  1       sq.  rod. 

1568160        "         =10890        "   =1210         "    =40         "    =1       sq.  rocd. 
6272640       "         =43500       "   =4840         "    =160       "    =4  "    =  x  acre. 

4014489600  "         =  27878400  "   =  3097600  "    =  102400  "    =  G40  sq.  a.   =  I  sq.  mile. 
36  sections  or  square  miles  =  6  miles  square  =  1  township. 
Carpenters'  work  is  frequently  computed  by  tho  square,  containing  100  square  feet; 
painters',  by  the  square  yard. 


SURVEYORS     MEASURE. 

7.92inches  =  llink(l.). 
198      "      =25     "        =1     rod(rd.). 
792      "      =  100    "        =4       "  or  66  ft.  =  1  chain  (ch.). 
63360  "       =  8000 "        =  320    "  =  80   "  =1  mile. 

625  sq.  links  =  1  pole;  16  poles  =  1  sq.  chain;  10  sq.  chains  =  1  acre. 
An  acre  is  equal  to  208J  feet  square,  nearly. 


CUBIC    OR   SOLID    MEASURE. 

1728  cubic  inches  (cu.  in.)  =  1  cubic  foot  (cu.  ft.). 
27     "     feet  =1     "     yard  (cu.  yd.). 

16     "      "  =1  cord  foot. 

8  cord  ft.  or  128  cubic  feet  =  1  cord  of  wood. 
A  pile  of  wood  8  ft.  long,  4  wide,  and  4  high,  =  1  cord. 
21f  cubic  ft.,  or  16  J-  ft.  long,  1£  feet  high,  and  1  ft.  wide,  =  1  perch. 

Masons'  work  is  frequently  computed  by  the  perch. 
40  cubic  feet  of  round  timber,  i.e.  as  much  round  timber  as  will  make  40  feet 

hewn,  —  1  ton  or  load. 
50  cubic  feet  of  hewn  timber  =  1  ton  or  load. 
A  cubic  foot  of  distilled  water,  maximum  density,  weighs  624,  lbs.  avoir. 


WEIGHTS    AND    MEASURES.  127 

LIQUID   MEASURE. 

WINE    MEASURE. 
4     gills  (g.)  -1    pint(pt.). 
8         "  =  2       "  =1  quart  (qt.). 

32      "  =  8  '   "  =  4      "  =1  gallon  (gal.)  (231  cubic  inches). 

2016  "  =  504  "  =  252  "  =  63     "  =1  hogshead  (hhd.). 

In  some  States  the  barrel  is  estimated  at  31*  gallons;  in  others,  32,  28,  &c.  Casks, 
called  tierces,  pipes,  butts,  hogsheads,  and  tuns,  are  usually  gauged,  and  do  not  ex- 
press any  definite  measures.  The  following  table  is  sometimes  used: — 42  gallons  = 
1  tierce ;  2  tierces  =  1  puncheon ;  2  hogsheads  =  1  pipe ;  2  pipes  =  1  tun. 

BEER    MEASURE. 

Used  in  measuring  beer  or  milk,  but  becoming  obsolete. 

2  pints  (pt.)  =  1  quart  (qt.). 

8    "  =  4     "  =1  gallon  (gal.)  =  (282  cubic  inches). 

36  gallons  =  1  barrel ;  54  gallons  =  1  hhd. 


DRY    MEASURE. 

2  pints  (pt.)  =  1  quart  (qt.). 

16   "  =8     "  =lpeck(pk.). 

64    "  =  32   "  =  4    "  =1  bushel  (bus.)  =  2150.42  en.  inches, 

or  a  cylinder  18£  inches  deep  and  8  inches  in  diameter.  36  bushels  =  1  chaldron. 
In  a  heaped  bushel  the  cone  is  6  inches  above  the  brim  of  the  measure.  A  heaped 
bushjal  contains  2747.70  cubic  incites,  or  about  five  pecks,  even  measure.  For  weights 
of  different  grains,  see  table,  page  228.  8  struck  bushels  =  1  English  quarter. 


WEIGHTS. 

TROY   OR   MINT   WEIGHT. 

Used  in  weighing  precious  metals,  jewelry,  liquors,  and  in  philosophical  experiments, 

24  grains  (gr.)  =  1  pennyweight  (pwt.). 

480    "  =20  "  =1  ounce  (oz.). 

5760  "  =  240  "  =  12  "  =1  pound  (ft). 

APOTHECARIES'    WEIGHT. 

Used  in  compounding  medicines.    In  this  weight,  the  pound,  ounce,  and  grain  ar# 
the  same  as  in  troy  weight.    The  ounce  is  differently  divided. 


20  grains 

i(gr.) 

=  1  scruple 

O). 

60      " 

=  3      ■    , 

=  1  drachm  (dr. 

or  3). 

480    " 

=  24    " 

=  8     " 

= 

1  ounce 

(3). 

6760  « 

=  288  " 

=  96  " 

— 

12    " 

«=  1  pound. 


128  WEIGHTS   AND    MEASURES. 


MEDICAL   DIVISION    OF   THE    GALLON. 

60  minims  (TTl)  =  1  fluidrachm,      f  5-    I    16  fluidounces     =  1  pint,  0. 

8  fluidrachms    =  1  fluidounce,      f  g.    I      8  pints  ==  1  gallon,  Cong. 

0.  Is  an  abbreviation  of  octans,  the  Latin  for  one-eighth;  Cong,  for  congiarium,  the 
Latin  for  gallon. 

A  single  common  teaspoonful,  or  45  drops,  makes  about  one  fluidrachm.  A  common 
teacup  holds  about  4  fluidounces;  a  common  tablespoon,  about  half  a  fluidounce; 
a  pint  of  water  weighs  a  pound. 

J£fc  is  an  abbreviation  for  recipe,  or  take;  a..,  aa.,  for  equal  quantities;  j.  for  1;  ij. 
for  2;  ss.  for  semi,  or  half;  gr.  for  grain;  P.  for  particula,  or  little  part;  P.  8eq.  for 
equal  parts;  q.  p.,  as  much  as  you  please. 


AVOIRDUPOIS    OR   COMMERCIAL   WEIGHT. 

Used  in  almost  all  commercial  transactions. 

10  drams  =  1     ounce. 

256     "     =  16       "       =1    pound  (7000  grains). 
6400    "     =  400     "       =  25     "       =1  quarter. 
25600 "     =  1600    "       =  100    "        =  4       "        =1  hundredweight. 
51200 "     =  32000 "       =  2000 "        =  80     «        =20  "  =1  ton. 

At  the  custom-house,  and  in  some  kinds  of  business,  2S  lbs.  =  1  quarter,  112  lbs. 
«=  1  cwt.,  and  2240  lbs.  =  1  ton. 

The  standard  avoirdupois  lb.  =  weight  of  27.7015  cubic  inches  distilled  water  at 
maximum  density. 

TIME   MEASURE. 

60       seconds  =  1      minute. 

3600         "        =60        "        =1    hour. 

86400       "        =1440      "        =24     "      =1      day. 

2592000    "        =  43200    "        =  720    "      =30     "     =1  month. 

31557600"        =525960"        =8766"      =  3654.  "     =12      "      =  1  year. 

The   time  in   which  the  earth  revolves  around   the  sun  is  365  days,  6  hours, 

9  minutes,  9fl,  seconds.    February  has  28  days,  except  in  leap-year,  or  years  which 

may  be  divided  by  4  without  a  remainder,  when  it  has  29,    Four  months  (April, 

June.  September,  and  November)  have  each  30  days ;  all  ttie  others  have  each  31  days. 

CIRCULAR   MEASURE. 

60      seccndii  ('0  =  1  minute  (/). 
3600       '*  =  60  minutes  =  1  degree  (°). 

108000   "  =1800    "  =30    "  =lsign(S.). 

1296000  "  =  21600  "  =  360  "  =  12  "  =1  circle  (C). 

90°  make  a  quadrant  or  right  angle. 


PENDULUMS. 
6  points  =  1  line;  12  lines  =  1  inch. 


MISCELLANEOUS    TABLES. 


129 


SHOEMAKERS     MEASURE. 

No.  1  small  size  is  4J  inch,  and  every  succeeding  No.  increases     of  an  inch  to  18. 
No.  1  large     "       8Ji  "  "  "  "  "        "       16. 


DIAMOND   WEIGHT. 


16  parts  =  1  grain. 
4  grains  =  1  carat. 
1  carat     =  3J  grains  troy,  nearly. 


ASSAYERS'    WEIGHT. 


1  carat  =  10  pwts.  troy. 

1  carat  grain  =    2  pwts.  12  grains, 
or  60  grains  troy. 
24  carats  =    1  lb.  troy. 

The  term  carat  is  also  used  to  express  the  fineness  of  gold,— each  carat  meaning 
twenty-fourth  part. 


MISCELLANEOUS   TABLES. 
BOOKS   AND   PAPER. 


SIZE  OF  PAPER. 

Inches 


Demy 17  by  22 

Medium 19  "  24 

Double  medium 24  "  38 

Super-royal 21  "  27 

Imperial 22  "  32 


Inches. 

Lettor 10  by  15 

Folio  post 16  "  21 

Foolscap 14  "  17 

Crown 15  "  20 

Double  Elephant 26  ■  40 


» 

A  sheet  (medium)  folded  in  2 

"  "  4 

«  <«  8 

•<  .<  12 

a  16 


is  called  folio. 

"  quarto  or  4to. 

"  octavo  or  8vo. 

"  duodecimo  or  12mo. 

"  16mo. 


24  sheets  =    1  quire. 
480     "       =20     "     =  lreain. 
2  reams  =  1  bundle;  5  bundles  =  1  bale. 


12  units  =»    1  dozen. 
144    ■      =12    "        =1  gross. 

12  gross  =    1  great  gross. 

20  units  =    1  score. 

66  lbs.    =    1  firkin  of  butter. 
100  "       —    1  quintal  of  dried  fish. 
21 J  stone  = 


196  lbs.  =  1  barrel  of  flour. 

200   "    =1        "        beef,  pork,  or  fish. 

280   "    =1         "        salt. 

100  "    =  1  cask  of  raisins. 

14  "    iron  or  load  =  1  stone. 

12  bbls.  of  wheat  =  7  English  quarter* 
1  pig;  8  pigs  =  1  fother. 


130  MONEY   OF   GREAT   BRITAIN. 


GREAT  BRITAIN. 


MONEY. 


4  Farthings  =  1  Penny,  d. 
12  pence  =  1  Shilling,  s. 
20  shillings    s=  1  Pound,       £. 

234.  The  Gold  coins  are  the  sovereign,  which  represents 
the  pound,  and  the  half-sovereign.  The  guinea,  :f  21  shil- 
lings, and  its  subdivisions,  have  not  been  coined  since  1816. 
The  standard  for  gold  is  11  parts  fine  gold  and  1  part  alloy. 
The  sovereign  weighs  123^J^  grains,  and  contains  1136^3 
or  113.001  grains  pure  gold. 

The  Silver  coins  are  crowns  of  5s.,  half-crowns,  florins  of 
2s.,  shillings,  the  6d.,  the  4d.  or  groats,  and  3c?.  pieces.  The 
shilling  weighs  87T3T  grains,  and  contains  80T8T  grains  pure 
silver. 

The  Copper  coins  are  the  penny,  half-penny,  and  farthing, 
coined  at  the  rate  of  24  pence  per  pound  avoirdupois. 

235.  Banh-of- England  Notes  are  a  legal  tender  for  any 
sum  over  £5 ;  silver  is  not  a  legal  tender  over  40s. ;  copper, 
for  not  more  than  12d.  in  pennies  or  half-pennies;  or  6<i.,  in 
farthings. 

236.  £  is  a  contraction  of  librse,  s.  of  solidi,  d.  of  denarii, 
and  a.  of  auadr  antes  ;  farthing  is  another  word  for  four- 
thing. 

In  accounts,  a  straight  line  is  written  between  shillings  and 
pence  when  both  are  mentioned :  thus,  2/6  for  2s.  6d. 

The  word  sterling  is  supposed  to  be  derived  from  the  first 
coiners  of  English  silver,  who  came  into  England  from  Ger- 
many in  the  reign  of  Richard  I.,  and  were  called  Easterlings. 
It  is  used  to  distinguish  the  currency  of  Great  Britain  from 
that  of  the  Colonies,  and  from  some  continental  money  bear- 
ing the  same  denominations. 


ENGLISH    WEIGHTS    AND    MEASURES.  131 

237.  Intrinsic  par  value  of  £1  a  8-4.866;  U.  S.  Custom- 
House  value,  £1  =  $4.84.  Freight  bills  are  paid  at  the  rate 
of  $4.80  per  £1.     In  British  America,  £1  =  $4. 

The  English  mint  price  of  gold  is  £3  17s.  lOJcZ.  for  standard 
gold,  or  |j  fine  The  mint  price  of  silver  is  5s.  per  ounce  for 
standard  silver,  or  |J  fine. 

238.  The  average  yearly  loss  on  the  wear  of  gold  is  esti- 
mated at  1  in  950,  and  of  silver  1  in  200. 

WEIGHTS   AND   MEASURES. 

239.  Before  1826,  the  chief  of  the  measures  of  capacity 
agreeing  with  those  of  the  United  States,  were  the  wine  gallon 
of  231  cubic  inches,  the  beer  gallon  of  282  cubic  inches,  and 
the  Winchester  bushel  of  2150.42  cubic  inches. 

240.  By  act  of  Parliament,  which  came  into  operation 
January  1,  1826,  certain  weights  and  measures,  under  the 
name  of  Imperial  Weights  and  Measures,  were  declared  to 
be  the  only  lawful  ones  in  the  United  Kingdom. 

241.  By  this  act,  the  imperial  gallon,  both  Liquid  and  Dry 
Measure,  contains  277.274  cubic  inches,  or  10  lbs.  avoirdu- 
pois distilled  water,  the  temperature  32°,  barometer  30  inches. 
The  imperial  bushel  contains  2218.192  cubic  inches,  or  8  im- 
perial gallons;  8  bus.  =  1  quarter;  10  qrs.  =  1  last. 

100  Imperial  Bushels  =  103.15  Winchester  bushels. 
100  Winchester  «       =    96.94  Imperial  " 

5  Imperial  Gallons  nearly  equal  6  Wine  G-allons. 
59  "  "         60  Ale  " 

144  lbs.  Avoirdupois  =  175  lbs.  Troy. 
192  oz.  "  =  175oz.      " 

242.  The  standard  avoirdupois  pound  of  the  United  States 
and  the  imperial  pound  avoirdupois  are  alike. 

The  Troy  pound  =  22.815689  cubic  inches  distilled  water. 
The  linear,  superficial,  and  cubic  measures  are  the  same  in  Eng- 
land as  in  the  United  States.     (See  Comparative  Tables.) 


Lo2  FRENCH    METRIC    SYSTEM. 


FRANCE. 

2-4:3.  The  Decimal  or  Metric  System  of  moneys, 
weights,  and  measures  is  now  established  in  France,  and  has 
been  adopted,  to  a  greater  or  less  extent,  in  Belgium,  Spain, 
Portugal,  Holland,  Switzerland,  Sweden,  Austria,  Turkey, 
Brazil,  and  several  other  countries. 

244.  MM.  Delambre  and  Mechain  estimated  the  length 
of  the  meridian  from  the  Equator  to  the  Pole  by  the  measure- 
ment of  an  arc  between  Dunkirk  and  Barcelona,  and  the 
ten-millionth  part  of  this  meridian,  or  one-fourth  of  the  cir- 
cumference of  the  earth,  was  taken  as  the  unit  of  length,  and 
is  termed  a  Metre. 

245.  The  square  of  10  metres  is  the  unit  of  surface  mea- 
sure, and  is  called  an  Are  (pronounced  air). 

246.  The  cube  of  the  tenth  part  of  a  metre  is  the  unit  of 
capacity  for  either  Liquid  or  Dry  Measure,  and  is  called  a 
Litre  (pronounced  le'-tur). 

247.  A  kii'olitre,  the  cube  of  a  metre,  is  the  unit  of  Solid 
Measure,  and  is  known  as  the  Stere. 

248*  A  Gramme  is  the  weight  of  a  quantity  of  water,  at 
32°  Fahr.  (the  temperature  of  melting  ice),  contained  in  a 
cube  erf  the  one-hundredth  part  of  a  metre. 

249.  The  names  of  the  multiples  of  these  integers  are  de- 
rived from  the  Greek,  and  those  of  the  divisions  from  the 
Latin  language. 

Deca    signifies      10  times.  Deci,    the     10th  part. 

Hecto       "  100     «  Centi,  "     100th     " 

Kilo  "        1000     "  Mille.    "  1000th     " 

Myria       "       10000     " 

MONEY. 

10  Centimes  =  1  Decime. 

10  Deciraes,  or  100  Centimes  =c  1  Franc. 


WEIGHTS    AND    MEASURES    OF   FRANCE.  133 

250.  The  French  coin  is  based  upon  the  unit  of  weight, — ■ 
the  gramme. 

251.  Silver  is  the  legal  standard  of  value  in  France.  The 
franc  in  silver  is  valued  at  9.384  pence  sterling.  The  value 
of  the  franc  in  gold  is  9.516  pence  sterling,  giving  fr.25.22 
for  £1  sterling.  The  United  States  Custom-House  valua- 
tion of  the  franc  is  18.6  cts.;  United  States  Mint  price, 
19.6  cts. 

252.  The  mint  standard  for  both  gold  and  silver  is  T95  pure 
and  -y^j  alloy.  The  gold  coins  are  the  napoleon,  of  20  francs, 
and  the  100,  50,  10,  and  5  franc  pieces. 

A  kilogramme  of  standard  gold  is  coined  into  155  twenty- 
franc  pieces. 

The  silver  coins  are  the  silver  napoleon,  of  5  francs,  and 
the  2,  1,  £,  and  \  franc  pieces. 

The  copper  or  bronze  pieces  are  10,  5,  2,  and  1  centimes, 
weighing,  respectively,  10,  5,  2,  and  1  grammes. 

253.  Accounts  were  formerly  kept  in  livres  tournoise,  with 
its  subdivisions  of  the  sou  and  denier.  12  deniers  —  1  sou  or 
sol,  20  sous  =  1  livre  tournoise,  24  livres  =  1  louis-d'or;  3 
livres  =  1  ecu  or  crown,  81  livres  =  80  francs. 

WEIGHTS. 

Gramme  ±=  15.432349  grains  Troy. 

The  kilogramme  (1000  grammes)  is  the  weight  most  fre- 
quently us«d  in  commerce,  and  is  equal  to  2.679227  lbs.  (2  lbs. 
8  oz.  3  dwt.)  Troy ;  or,  2.204621  lbs.  (2  lbs.  3  oz.  4.652  dr.) 
avoirdupois.     A  kilogramme  is  generally  taken  as  2£  lbs. 

373£  grammes  =  1  lb.  Troy.     453f  grammes  —  1  lb.  avoirdupois. 
1  cwt.  =  50.80234  kilogrammes. 
100  myriogrammes  =  1  ton,  20|  lbs. 
1'  quintal  m^trique  sa  100  kilogrammes. 

Note. — At  the  U.  S.  Post-Office,  15  grammes  are  taken  as  i  oz. 

12 


184  WEIGHTS    AND    MEASURES    OF    FRANCE. 


MEASURES    OF    LENGTH. 

1  metre        =  39.871  English  inches. 

1  decimetre  ==    3.9371     " 

1  kilometre  =    0.62138  miles. 

1  Eng.  mile=    1.609036  kilometres. 

Old  Measure.— 1  aune  ==  li  yds.     1  brace  =  §  yds.     See  Art.  73. 
Merchants  usually  reckon  the  metre  as  one  and  one-twelfth  yards. 

MEASURES    OF    SURFACE. 

1  are  =  a  square  decametre  =  119.6046  sq.  yds. 

1  centiare    =  10.76441  sq.  ft. 
1       «  =    1.196046  sq.  yds. 

1  hectare     =  2  acres,  1  rood,  35  perches. 
1  acre,  Eng.—  .40466  hectares. 
100  sq.  ft.        ass  9.28987  sq.  metres. 


MEASURES    OF   CAPACITY. 

1  litre  =  61.02803  cubic  inches. 

1    m  ==   2.1135  wine  pints,  or  1.7608  imperial  pints,  or  908 

qts.  dry  measure. 
I  hectolitre    =    3.53171  cubic  ft.  =  22.01  imperial  gals.,  or  26.419 

wine  gals.,  or  2.839  Winchester  bus. 


MEASURES    OF    SOLIDITY. 

1  stere  or  kilolitre  =  35.31714  cubic  feet  =s  .2759  cord. 
1      «  =    1.308042  "      yds. 

100  cubic  iiiches  =  16.38592     "      centimetres. 

254.  The  terms  of  the  Metric  System  are  now  generally 
used  by  scientific  men.  Congress,  by  act  of  July  27,  1866, 
made  it  lawful  in  contracts  and  in  legal  proceedings  to  employ 
the  weights  and  measures  of  the  Metric  System;  and  Great 
Britain,  in  1864,  passed  an  act  authorizing  its  use. 


FOREIGN    MONEYS    OF   ACCOUNT.  135 

SYNOPSIS  OF 

FOREIGN  MONEYS  OF  ACCOUNT. 

Money  at 
Amsterdam,  5  cents.— 1  stiver,  20  stivers  = 

1  guilder  or  florin.  1  florin  =    .40 

Berlin,  30  silver  groschen  =  1  thaler.  1  thaler        =    .69 

Bremen,  5  schwaren  aar  1  grote,  72  grotes  = 

1  rix-daler,  5  rix-dalers=  1  louis-d'or.  1  s.  daler  =  .79$ 
Calcutta,  12  pies  =  1  anna,  16  annas  =1  rupee.  1  rupee  =  .44$ 
Christiania,  120  skilling  =  1  specie-daler.  1  s.  daler      =  1.06 

1  banco  rix-dollar  =  .39f. 
Constantinople,  40  paras  =  1  piastre,  100  pias- 
tres =  1  medjidie.  1  medjidie    =3.35 
Copenhagen,  96  skilling  =  1  rigsbank  daler.      1  s.  daler     =  1.05 

1  banco  rix-dollar  =  .55. 
Frankfort,  60  kreutzer  =s  1  Zollverein  florin 

or  guilder.  1  florin  =    .40 

Genoa,  100  centesimi  =  1  lira  Italiana.  1  lira  =    .18^ 

Hamburg,  12  pfenning  =  1  schilling,  16  schil- 
ling =  1  mark.  1  m.  banco  =    .35$ 
Lisbon,  1000  reis '=  1  milreis.                               1  milreis       =  1.12 
London,  240  pence  =  12  shillings  =  1  pound.   1  pound         s=  4.86 
Madrid,  34  maravedis  =  1  real,  20  reals  =  1 

duro.  1  duro  =  1.00 

Naples,  10  grani  =  1  carlino,  10  carlini  =  1 

ducat.  1  ducat         =    .80 

New  York,  100  cents  =  1  dollar. 

Palermo,  20  grani  =  1  taro,  30  tari  =  1  onza.   1  onza  =  2.40 

Paris,  100  centimes  =  1  franc.  1  franc  =    .19A 

Pekin,  1  tael  =  10  mace  =  100  candareens  = 

1000  cash.  1  tael  =  1.48 

Rio  de  Janeiro,  1000  reis  =  1  milreis.  1  milreis      =    .51J 

Rome,   10  bajocchi  =  l  paolo,  10  paoli  =  1 

scudo  Romano.  1  s.  Romant)  =    .99$ 

St.  Petersburg,  100  copeck  =  1  silver  rouble.   1  s.  rouble    =    .75 
Stockholm,    12    runstyken  =  1    skilling,   48 

skillingar  =  1  daler  in  banco.  1  daler  as  1.06 

Venice,  100  centesimi  ==  1  lira  Austriaca,  3 

lire  Austriache  =  1  florin  Austriaco.  1  lira  =    .16 

Vienna,  100  kreutzer  =  1  gulden  or  florin.        1  florin         =    .48$ 


13t 


FOREIGN   WEIGHTS   AND    MEASURES. 


COMPARATIVE    TABLES    OF   WEIGHTS    AND    MEASURES. 
1  Imperial  Gallon  =  277.274  cubic  inches  =  1.2  Wine  Gallons. 


Wine  Measure,  1  quart  ==  57f 
Dry  «  1     "     =  67| 

Beer        "         1     "     =  70| 


1  gall.  =281  cubic  inches. 

1    "     =268 

1     "     =282  m 


Apolhlcar^s'  Weight,  j1  P°™<*  =  5760  grains. 
Avoirdupois  "  1      "      =7000      " 

175  lbs.  Troy  =  144  lbs.  Avoirdupois. 

Dry  Measure,  1  Bushel  of  U.  S.  (Winchester  bu.)  =2150.42  cub.  in. 
"  1  Imperial  Bushel  of  Great  Britain  =2218.192       " 

"  1  Bushel  U.  S.  heaped  measure        =2747.7167     " 


FOREIGN  WEIGHTS  AND  MEASURES 


FREQUENTLY    MET   WITH   IN   REPORTS    OF   MARKETS. 


Ahm,  in  Rotterdam           .         (near 

iy) 

40  gallons. 

Almude,  in  Portugal    .... 

4.37  « 

Almude,  in  Madeira 

4  to  8  gallons. 

Alquiere,  in  Madeira   .                  . 

If  to  2  pecks. 

"         in  Bahia 

1  bushel. 

"         in  Maranham 

H     " 

"         in  Rio  Janeiro 

1  to  1£  bushels. 

"         in  Pernambuco 

1  to  1£       " 

Anna  of  rice,  in  Ceylon    . 

260.4  lbs. 

Arroba,  in  Portugal     . 

32 

"        in  Spain 

25 

"        of  wine,  in  Spain  (large) 

4.246  gallons. 

"               "               "     (small) 

3.34 

Arroba,  in  Malaga 

28  inches. 

Arsheen,  in  Russia 

Bahar,  in  Batavia  (large)    . 
"                 "         (small) 

4£  piculs. 

3"       " 

Bale  of  cinnamon,  in  Ceylon  (net) 

104$  lbs. 

Barilla,  in  Naples     . 

11  gallons. 

Cantar,  in  the  Levant 

118.8  lbs. 

"         of  oil,  in  Leghorn 

88 

"         of  brandy      " 

120       " 

"         in  Malta 

174£     « 

"         (grosso)  in  Naples 

196J     " 

"         (piccolo)         "    . 

106       « 

"         (grosso)  in  Sicily    . 

192*     " 

11         (sottile)            " 

175"     « 

Carro,  in  Naples 

52.2  bushels. 

44       of  wine,  in  Naples 

264  gallons. 

FOREIGN    WEIGHTS   AND    MEASURES. 


137 


Catta  of  tea,  in  China           .... 

tt  lbs. 

Cayang  of  rice,  in  Batavia 

.      3581  lbs. 

Chetwert,  in  Russia 

5.95  bushels. 

Fanega,  in  Spain 

.      1.6 

Hectolitre,  in  France  .         .         .2.84  bus. 

or  26.42  gallons. 

Kilogramme,  in  France  and  Netherlands     . 

21  lbs. 

Last  of  grain,  in  Amsterdam    . 

.      85|-  » 

11             "        in  Bremen     .... 

801" 

"     of  salt,  in  Cadiz         .... 

75i  bushels. 

"     or  moyo  of  salt,  in  Portugal 

70         « 

"     of  grain,  in  Dantzic  (nearly)    . 

.      93 

"             "       in  Flushing    .... 

92J       « 

"             "       in  Hamburg 

.      89."7      " 

"             "       in  Lubeck 

91 

"             "       in  Rotterdam     . 

.      85A     " 

"    in  Sweden 

75         « 

"     Utrecht              

.      59+     « 

Lispound,  in  Hamburg         .... 

14  lbs. 

Mark,  in  Holland     ..... 

9  ounces. 

Maund  (factory),  in  Calcutta 

74f  lbs. 

"        (bazaar),  10%  heavier 

.      82.4  » 

Mina  of  grain,  in  Genoa      .... 

3.43  bushels. 

Moyo,  of  Lisbon       .         . 

.      23+       « 

"       in  Oporto 

30 

Oke,  in  Smyrna 

.     2.83  lbs. 

Orna  (or  eimer)  of  wine,  in  Trieste      . . 

14.94  gallons. 

"       of  oil                                  " 

17 

Palmo,  in  Naples 

10J  inches. 

Picul,  in  Batavia  and  Madras 

136  lbs. 

"      in  China  and  Japan   .... 

133£  '< 

Pipe  of  wine,  in  Spain 

160+  gallons. 

Pood,  in  Russia 

36  lbs.  loz.  lOdrs. 

Quintal,  in  Portugal 

89.05  lbs. 

"         in  Smyrna      ..... 

127.2      " 

"         (of  4  arrobas),  in  Spain 

100 

"         in  Turkey 

124$        « 

"         of  cotton  (45  okes),  in  Turkey 

127.3      " 

Rottolo,  in  Portugal 

12J         » 

Rottolo,  in  Genoa 

24 

"         in  Leghorn     ..... 

3 

Salma  of  grain,  in  Sicily          . 

9.77  bushels. 

"      (general)          "          .... 

7.85 

"      of  wine              M 

23.06  gallons. 

Scheffel,  in  Germany   ..... 

1£  to  3  bushels. 

Ship  pound,  in  Denmark           . 

352  lbs. 

**         "         in  Hamburg     .... 

299*  " 

Staro  (or  stajo),  in  Trieste       . 

2.34+  bushels. 

Tale,  in  China      ...... 

1^-  ounces 
\\  yards. 

Vara,  in  Rio  Janeiro         .         .     (nearly) 

M      in  Spair 

91      « 

12* 


138  EXCHANGE. 


EXCHANGE. 

255.  The  term  Exchange,  in  commerce,  signifies  the  giving 
or  receiving  of  one  currency  for  its  value  in  another;  or,  the 
method  of  making  payments  by  means  of  written  orders 
without  the  transmission  of  money.  See  Bills  of  Ex- 
change. 

256.  Exchange  is  of  two  kinds,  Domestic  or  Inland,  and 
Foreign. 

257.  Domestic  Exchange  includes  the  exchanges  made 
within  the  limits  of  one  country. 

258.  Foreign  Exchange  relates  to  the  transactions  be- 
tween different  countries. 

Foreign  Exchange  comprises  Nominal  Exchange  and  Real 
Exchange. 

259.  Nominal  Exchange  has  reference  to  the  compara- 
tive market  value  of  the  currencies  of  different  countries. 

260.  Real  Exchange  is  that  which  relates  to  the  inter- 
change of  commodities  without  reference  to  the  precious 
metals. 

261.  The  True  or  Intrinsic  Par  of  Exchange  be- 
tween two  countries  is  the  exact  equivalent  of  pure  metal  in 
the  coined  piece  which  forms  the  unit  of  price  of  one  country 
compared  with  the  currency  of  the  other.  The  alloy  is 
reckoned  of  no  value. 

262.  "  Thus,  according  to  the  mint  regulations  of  Great  Britain 
and  France,  £1  sterling  is  equal  to  25  fr.  20  cent.,  which  is  said 
to  oe  the  par  between  London  and  Paris.  Exchange  between  the 
two  countries  is  said  to  be  at  par  when  bills  are  negotiated  at  this 
rate;  that  is,  when  a  bill  for  £100  drawn  in  London  is  worth  2520 
francs  in  Paris,  and  conversely.  When  £1  in  London  buys  a  bill 
on  Paris  for  more  than  25  fr.  20  cent.,  the  exchange  is  said  to  be  in 
favor  of  London  and  against   Paris;    when  £1  in  London  will  not 


DOMESTIC    EXCHANGE.  139 

buy  a  bill  on  Paris  for  25  fr.  20  cent.,  exchange  is  against  London 
and  in  favor  of  Paris. 

263.  "  Exchange  is  made  to  diverge  from  par  by  any  discrepancy 
between  the  actual  weight  or  fineness  of  the  coins  and  the  mint 
standard,  and  by  the  variations  in  the  demand  and  supply  of  bills 
of  exehange. 

"The  cost  of  conveying  bullion  or  coin  forms  the  limit  within 
which  the  rise  and  fall  of  real  exchange  is  confined ;  for  if  a  mer- 
chant can  send  a  bill  for  less  than  the  expense  of  sending  gold,  he 
will  send  a  bill,  but  if  sending  a  bill  would  cost  more  than  the  ex- 
pense and  risk  of  sending  gold,  then  he  will  send  gold." 

204:.  The  Commercial  Par  of  Exchange  is  the  market 
value  of  the  currericy  of  one  country  when  sold  for  the  cur- 
rency of  another. 

265.  The  Course  or  Rate  of  Exchange  is  the  current 
prices  of  exchanges,  or  the  variable  price  of  the  money  of 
one  country  which  is  paid  for  a  fixed  amount  of  that  of  an- 
other country. 

DOMESTIC   EXCHANGE. 

266.  The  calculations  connected  with  Domestic  Exchange 
require  only  the  ordinary  applications  of  Percentage. 

EXAMPLES. 

1.  What  is  the  cost  of  a  bill  for  $240  on  New  York,  pur- 
chased at  \\°lo  premium?  Ans.  $243. 

2.  What  is  the  cost  of  a  draft  on  New  Orleans  for  $1800, 
at  1 1  %  premium  ? 

3.  Sold  $375  uncurrent  money  at  2\cf0  discount.  How 
much  did  I  receive?     How  much  did  I  lose? 

4.  Exchanged  $G00  in  bank  notes  for  gold  at  5%  premium. 
How  much  did  I  receive  ? 

5.  Bought  goods,  $1250,  and  sold  them  at  a  profit  of  25%  ; 
purchased  a  draft  on  St.  Louis,  with  the  proceeds,  at  a  dis- 
count of  f  %.     What  was  the  amount  of  the  draft? 

6.  Shipped  goods  to  Havana,  and  received  a  draft  for  $2500, 
which  gave  me  a  profit  of  20%  j  sold  the  draft  at  4|  %  pre- 
mium.    How  much  did  I  gain  by  both  transactions? 


140 


QUOTATIONS    OF    EXCHANGE. 


7.  A  commission  merchant  sold  goods,  the  net  proceeds  of 
which  were  $2750.  How  large  a  draft  can  he  buy  to  remit 
to  his  consignor,  if  he  pnys  i  %  premium  for  the  draft?  How 
large  a  dral't  if  he  purchases  at  *]  </c  discount  ? 

FOREIGN  EXCHANGE. 

2H7»  In  Foreign  Exchange  it  is  usual  to  reckon  the  money 
of  one  country  as  fixed,  and  the  other  as  variable.  The 
country  whose  money  is  calculated  at  a  fixed  price  is  said  to 
receive  the  variable  price,  while  -the  other  country  is  said  to 
give  the  variable  price.  Thus,  if  I  buy  a  bill  of  exchange 
on  Paris,  I  receive  so  many  francs  per  dollar, — the  dollar  is 
the  fixed  price,  and  the  francs  the  variable  price.  If  I  buy 
a  bill  on  Hamburg,  I  pay  so  many  cents  per  marc  banco ; 
the  marc  banco  is  called  the  fixed  price,  and  the  cents  the 
variable  price.  In  quotations  of  exchange  rates,  it  is  usual 
to  give  only  the  variable  prices. 

268.  Nearly  all  the  bills  of  exchange  drawn  in  this  coun- 
try are  drawn  and  negotiated  on  one  of  the  following  places : 
viz.,  London,  Paris,  Bremen,  Hamburg,  Cologne,  Leipsic, 
Frankfort,  and  Amsterdam. 


QUOTATION   OF   FOREIGN   BILLS   OF   EXCHANGE, 
By  Dhkxel  &  Co.,  Bankers,  Philada.,  June  1,  1866. 


Exchange. 

Explanation. 

On  London, 

60  days 

109    @109| 

Premium  (on  old  par  of  4.44$),  from  9  to 

s 

9|  per  cent,  on  bills  at  60  days'  sight. 

«<         « 

3    " 

109}  ©  110£ 

Premium  from  9}  to  10J  per  cent,  on  bills 
at  3  days'  sight. 

"  Paris, 

60    " 

5.11 

At  5  francs,  11  centimes  per  dollar. 

u      « 

3    " 

5.08 

"   5      "          8 

"  Bremen, 

60    " 

.80 

"  80    cents  per  rix-dollar. 

"   Hamburg, 

60    " 

.37 

"   37       "        "    marc  banco. 

"  Cologne, 

60    " 

.73* 

"   73i     "       .  ''    thaler. 

"   Leipsic, 

60    " 

.74 

II    74          K            it            M 

"   Frankfort, 

60    " 

.42 

"  42       "        "    guilder  or  florin. 

"  AiiiBterdan 

,   60    " 

.42  @  .42} 

From  42  to  42}  cts.  per  guilder. 

See,  also,  London  Course  of  Exchange. 


209.  Bills  of  exchange  are  drawn  in  the  money  of  the 
country  in  which  they  are  made  payable.  (See  Forms  off 
Bills  of  Exchange.) 


PAR    OF    STERLING    EXCHANIE.  141 

Exchange  on  England. 

270.  By  the  usage  of  bankers  for  ages,  the  pound  sterling 
has  been  valued  by  the  old  Spanish  Carolus  pillar  dollar,  now 
entirely  out  of  circulation  in  Europe  and  America;  of  these, 
$4.44|  were  equivalent  to  the  pound  sterling. 

This  rate  originally  represented  the  true  par  of  exchange 
between  the  two  countries.  In  183 1  the  ea^e  was  reduced 
in  weight  to  258  grains  (see  Tables  of  Coins  op  U.  S.), 
and  now  contains  232.2  grains  pure  gold. 

The  English  sovereign  is  the  coined  piece  of  which  the 

pound  sterling  is  the  money  of  account,  and  contains  113.001 

grains  pure  gold. 

Standard  weight  of  sovereign,  grains    .     123.274 
Alloy,  TV  part 10.273 

Fine  gold  in  the  sovereign     .         .        .     113.001 

By  the  proportion — 

232.2  grains  :  113.001  grains  : :  $10, 
we  find  that  the  equivalent  of  the  pound  sterling  is  $4.8665 ; 
and,  allowing  for  the  wear  of  coin,  we  have  $4.84,  the  value 
established  by  Congress  in  1842,  and  the  rate  at  which  duties 
are  estimated  in  the  Custom-Houses. 

It  has  been  found  convenient  to  retain  the  old  value  as  the 

basis  of  exchange,  and  to  express  the  present  exchangeable 

value  by  a  premium  on  this  basis.     It  requires  the  addition 

of  9%  to  make  the  Custom-House  value,  and  the  addition  of 

about  9£%  to  equal  the  intrinsic  value,  of  a  pound  sterling  in 

our  currency. 

Old  par  value  of  £1.     =  $4,444      Old  par  value,  $4.4444 

9%  premium,  =      .399      9£%  premium,  .4222 

Custom-House  value,        $4.8443      Intrinsic  value,  $4.8666 

Exchange  quotations  refer  to  the  old  par.  When,  there- 
fore, exchange  is  quoted  at  about  9J%  premium,  there  is  in 
fact  no  real  premium,  but  the  true  par  has  been  attained. 
When  nothing  is  said  to  the  contrary,  the  quotations  are 
for  bills  at  usance,  or  60  days'  sight  and  3  days  of  grace, 


142 


SHIPMENTS   OF   SPECIE. 


which,  at  6  %  interest,  involves  a  loss  of  more  than  1  %  be- 
sides the  time  of  transportation.  On  the  other  hand,  1  <f0  is 
about  the  cost,  including  freight,  insurance,  &c,  of  shipping 
gold;  and  as  one  of  these  items  balances  the  other,  the  real 
par  of  exchange  on  England  is  9£%,  at  which  rate  it  is  as 
well,  or  better,  to  remit  good  60-day  bills  as  specie. 

PRO  FORMA  ACCOUNT  OP  A  SHIPMENT  OP  MEXICAN 
DOLLARS  FROM  NEW  YORK  TO  LONDON. 


10000  dollars  purchased  in  New  York  at  If  prem.   . 
Packing  Charges,  Shipping,  &c.         .         . 
Insurance  at  \<jf0  on  10175.00,  and  Policy  $1     . 

Total  cost  in  New  York    . 

Value  in  London,  10000  dollars  weighing  8660  ounces, 
and  sold  at  58£  pence  per  ounce 

Charges  in  London,  Freight,  \<f0 
Primage,  bf0 

Landing  Charges,  Postage,  &c. 
Brokerage,  \%,  Com.  \<f0  =  \<f0  = 

Net  Proceeds,  Cash,  in  London 
Add  Interest  for  63  days,  at  4%    . 


10175.00 
7.50 

51.87 

$10234.37 


£ 

2097 


s.    d. 
6  11 


£     s.    d. 

5     4  9 

5  2 

13  9 

13     2  2 


19     5  II 

2078     1     0 
14  10  11 

£2092  11  11 

Par  of  £2092  lis.  lid.  =  $9300.43.  This  amount  drawn 
at  60  days'  sight,  to  produce  the  above  $10234.37,  would 
establish  the  rate  of  exchange  on  London  at  110.04  per  cent. 

Gold  is  sometimes  exported  when  exchange  is  quoted  below 
the  true  par,  by  bankers  who  have  branch-houses  and  there- 
fore no  commissions  to  cover,  and  who  insure  their  own  risks  ; 
by  those  who  can  save  a  guaranty  commission  on  commercial 
bills,  and  by  those  who  are  compelled  to  procure  specie. 

Exports  of  Specie  from  New  York  for  the  week  ending  June  2, 1866, 
*tc  Liverpool,  Southampton,  Havre,  Bremen,  and  Hamburg. 

Amount  bro't  forward,  $5,021,817 


5,021,817 


May  30,  American  Gold, 

$2,715,700 

Juno  2,  Foreign  Coin  and  Ame- 

"     "     French           " 

6,208 

rican  Gold, 

1,179,468 

"      "     Spanish         " 

9,492 

"     "   German  Silver, 

2,000 

"     31,  American     " 

485,000 

"     "   Mexican    " 

40,828 

Jane  1,         " 

1,645,197 

"     "   Silver  Coin, 

20,000 

"       "  Gold  and  Silver  bars, 

14,800 

"     "   American  Gold, 

606,834 

"       "   Sovereigns, 

62,920 

"     "  Foreign  Coin, 

50 

■       2,  Gold  and  Silver  bars, 

82,500 

Total  for  the  week, 

$6,870,997 

EXCHANGE  ON  ENGLAND,  143 


RULES  FOR  COMPUTING  STERLING  EXCHANGE, 

USED    BY    BANKERS    AND   DEALERS    IN    EXCHANGE. 

271.  The  par  value  of  a  pound  sterling,  |4.44$,  equals  $4|, 
or  4g°  dollars;  and  as  there  are  40  sixpences  in  a  pound,  1 
sixpence  is  equal  to  ^  of  a  dollar.  To  find  the  real  value, 
a  premium  must  be  added.     See  Sterling  Table,  page  146. 

272.  To   FIND   THE   VALUE   OF   STERLING   MONEY. 

Rule  I. — Reduce  the  pounds  and  shillings  to  sixpences,  by 
multiplying  the  pounds  by  J+0  and  the  shillings  by  2;  to  their 
sum  add  1,  if  the  pence  equal  or  exceed  6;  divide  by  9,  and 
to  the  quotient  add  the  given  premium,  and  2  cents  for  every 
penny  exceeding  6  in  the  given  number  of  pence. 

EXAMPLE. 

1.  What  is  the  value  in  U.  S.  Currency  of  £540  7s.  7d.} 
at  a  premium  of  9£  %  ? 


540X40  = 

7X   2  = 

7=6+1= 

21600 

14 

1 

9)21615 

2401.6667 

216150003 
12008333 

228.158336  Premium. 
2401.6666 

Value  of  Id., 

2629.824936 

2 

$2629.84 

Rule  II. — Reduce  the  pounds  and  shillings  to  sixpences, 
and  to  their  sum  add  £  the  number  of  pence  ;  then  divide  by 
9,  and  to  the  quotient  add  the  given  premium. 


144  EXCHANGE    ON    ENGLAND 


EXAMPLE   GIVEN    UNDER   RULE   I. 

7_^_   6=  1.166 

7X2=  14 

540  X  40  =     ,21600 

9)21615.166 

2401.685  Par  value. 
9£  per  cent. 


216.15165 
12.00842 


228.16007  Premium. 
2401.685 


Ans.   $2629.845 

2.  Reduce  £1872  lis.  5c?.  to  dollars  at  par. 

Ans.  $8322.54. 

3.  Reduce  £617  Is.  Id.  to  United  States  currency  at  9% 
premium.  Ans.  $2989.28. 

4.  What  is  the  value  of  £1500  at  8%  premium? 

5.  What  will  be  the  cost  of  the  following  bill  of  exchange 
at  8 1 %  premium? 


£150.  New  York,  June  13,  1866. 

Sixty  days  after  sight  of  this  First  of  Exchange 
(Second  and  Third  of  same  tenor  and  date  unpaid),  pay  to 
the  order  of  R.  J.  Milligan  One  Hundred  and  Fifty  Pounds, 
value  received,  and  charge  the  same  to  account  of 

Brown  &  Bros. 
To  Brown,  Shipley  &  Co., 
Liverpool,  England. 

273.  To  reduce  Federal  money  to  Sterling. 

Rule  I. — Divide  the  given  amount  by  the  value  of  £1  at 
the  given  premium. 

Rule  II. — Multiply  the  given  amount  by  9,  and  divide  the 
product  by  Jfi;  annex  two  ciphers  to  the  quotient,  and  divide 
by  100  increased  by  the  premium. 

EXAMPLES. 

1.  A  commission  merchant  wishes  to  remit  $7071.57  to 


STERLING    EXCHANGE   TABLE. 


145 


England.     How  large  a  bill  of  exchange  can  he  purchase  at 
9  %'  premium? 

7071.57 


40)63644.13 


1591.1033 


Ans.  £1459  14s.  6Jrf. 


1591.1033 
100 

109)159110.3300 

1459.7277 
20 

14.5540 
12 


6.6480 


2.  What  amount  of  exchange  can  I  buy  for  $3567.60  at 


82%  premium 


£739  16s.  6d. 


3.  Purchased  a  bill  of  exchange,  at  9f  %  premium,  which 
cost  $4275.     How  large  was  the  bill  ? 
4. 

Pay 


How  large  a  bill  of  exchange  can  I  buy  for  $2850,  if  I 
\°J0  premium? 

The  cost  of  goods  imported  from  England  is  often  estimated 
by  adding  the  proportion  of  charges  to  the  value  of  the  pound 
or  shilling.     For  example  : — 

An  invoice  amounts  to  £2400,  which,  with 
Exchange  at  9%  premium  = 
Duties,  freight,  and  other  charges,  amount  to 

Making  the  total  cost 
Then,  if  £2400  cost  $12227,  one  pound  cost 
12227  -f-  2400  =  $5.09£  nearly,  and  1  shilling  costs  25£  cts., 
1  penny  2i  cts.     Cloth  at  16d.  per  yd.  would  cost  33  cents. 


$11626.66 
600.34 

$12227.00 


TABLE 

Showing  the  value  of  £1  sterling  from  If.  to  12\  per  cent,  premium 
on  the  old  par  of  $4-44$- 


Old  par 


$4,444    7|  per  cent.      $4,789 


4  pei 

cent. 

4.622 

8%  (Eng.  fr'ts)  4.800 

4* 

• 

4.644 

8|-  per  cent.        4.811 

5 

« 

4.667 

8£       "                4.822 

5* 

« 

4.689 

8|       "                4.833 

6 

« 

4.711 

9  (Cust.-House)  4.844 

6* 

< 

4.733 

9 1  per  cent.        4.850 

7 

< 

4.756 

8f       "                4.856 

1\ 

« 

4.767 

9|       "                4.861 

A 

« 

4.778 

92       "                 4.867 

K 

13 

9f  per  cent. 


10 

10* 

10} 

11 

ii* 

12 

12* 


$4,872 
4.878 
4.883 
4.889 
4.894 
4.911 
4.933 
4.956 
4.978 
5.000 


146 


EXCHANGE. 


STERLING  TABLE. 

Calculated  at  $4.8665  to  1£.,  according  to  Act  of  Congress  which  went  into 
effect  January  1st,  1874.    This  is  equivalent  to  9£  per  cent,  pre- 
mium on  the  old  par  of  $4.44f . 


£ 

8  cts.  m. 

£ 
21 

$  cts.  m. 

£ 

$  cts.  ra. 

£ 

$  cts.  m. 

£ 

81 

f  cts.  m. 

1 

4.8665 

102.1965 

41 

199.5265 

61 

296.8565 

394.1865 

2 

9.733 

22 

107.063 

42 

204.393 

62 

301.723 

82 

399.053 

3 

14.5995 

23 

111.9295 

43 

209.2595 

63 

306.5895 

83 

403.9195 

4 

19.466 

24 

116.796 

44 

214.126 

64 

311.456 

84 

408.786 

5 

24.3325 

25 

121.6625 

45 

218.9925 

65 

316.3225 

85 

413.6525 

6 

29.199 

26 

126.529 

46 

223.859 

66 

321.189 

86 

418.519 

7 

34.0655 

27 

131.3955 

47 

228.7255 

67 

326.0555 

87 

423.3855 

8 

38.932 

28 

136.262 

48 

233.592 

68 

330.922 

88 

428.252 

9 

43.7985 

29 

141.1285 

49 

238.4585 

69 

335.7885 

89 

433.1185 

10 

48.665 

30 

145.995 

50 

243.325 

70 

340.655 

90 

437.985 

11 

53.5315 

31 

150.8615 

51 

248.1915 

71 

345.5215 

91 

442.8515 

12 

58.398 

32 

155.728 

52 

253.058 

72 

350.388 

92 

447.718 

13 

63.2645 

33 

160.5945 

53 

257.9245 

73 

355.2545 

93 

452.5845 

14 

68.131 

34 

165.461 

54 

262.791 

74 

360.121 

94 

457.451 

15 

72.9975 

35 

170.3275 

55 

267.6575 

75 

364.9875 

95 

462.3175 

16 

77.864 

36 

175.194 

56 

272.524 

76 

369.854 

96 

467.184 

17 

82.7305 

37 

180.0605 

57 

277.3905 

77 

374.7205 

97 

472.0505 

18 

87.597 

38 

184.927 

58 

282.257 

78 

379.587 

98 

476.917 

19 

92.4635 

39 

189.7935 

59 

287.1235 

79 

384.4535 

99 

481.7835 

20 

97.33 

40 

194.66 

60 

291.99 

80 

389.32 

100 

486.65 

Pence. 

Cents. 

Shillings. 

Sets. 

Shillings. 

$cts. 

1 

2£M 

1 

&hM 

11 

2.67 

2 

4 

2 

.48 

12 

2.92 

3 

6 

3 

.73 

13 

3.16 

4 

8 

4 

.97 

14 

3.40 

5 

10 

5 

1.21 

15 

3.65 

6 

12 

6 

1.46 

16 

3.89 

-   7 

14 

7 

1.70 

17 

4.13 

8 

16 

8 

1.94 

18 

4.38 

9 

18 

9 

2.19 

19 

4.62 

10 

20 

10 

2.43 

20 

4.87 

11 

22 

12 

24 

(See,  also,  Importers'  Advance  Table.) 


To  find  the  value  of  any  given  amount  not  mentioned  in  the 
table,  take  the  sum  of  those  numbers  that  will  equal  the  given 
amount. 


EXCHANGE. 


147 


London  Course  of  Exchange. 

274.  Lonlon  has  been  called  the  great  clearing-house  of  the 
world.  Nearly  all  the  foreign  trade  of  the  United  States  is  settled 
through  England  and  France. 


LONDON    RECEIVES    FROM,  OR    GIVES    TO, 
Variable,  according  to  the  exchanges, 


Amsterdam 

12  florins  and  3  stivers 

for 

£1  sterli 

ag- 

Bremen 

609}  rix-dollars 

£100  sterling. 

Berlin 

6  dollars,  25  silver  groschen    ' 

£1          « 

Christiania 

4  specie-daler,  30  skilling         ' 

i 

Constantinople 

140  piastres 

i<            < 

Copenhagen 

9  rigsbank  daler,  10  skilling    ' 

"    , 

Frankfort 

121  Zollverein  florins 

£10 

Genoa 

25  lire,  35  centesimi 

£1 

Hamburg 

13  marks,  12  schillings 

«                i 

Milan 

25  lire,  40  cents 

U                 ( 

Leghorn 

25    "     50     " 

((               i 

Paris 

25  francs,  21  centimes 

«(               ( 

Rome 

46  Paoli 

««               t 

Stockholm 

12  dalers  in  banco,  1  skilling  * 

««                < 

Vienna 

13  florins,  70  kreuzers 

{(               « 

Calcutta 

23  pence  sterling        for 

1  Comp 

.  rupee. 

Gibraltar 

48£     " 

1  duro, 

or  hard  dollar 

or  Spanish  dollar. 

Lisbon 

53}     " 

1  milreis. 

Madrid 

504i     u 

1  hard  dollar. 

Naples 

89*     "        " 

1  ducat 

New  York 

49£     M 

1  U.  S. 

dollar. 

Palermo 

119*     « 

1  onza. 

Pekin 

78}     " 

a  thousand  cash. 

Rio  Janeiro 

30       « 

1  milreis. 

St.  Petersburg 

38}     " 

1  silver  rouble. 

Venice 

47       " 

6  lit 

e  Austriache 

(See,  also,  Synopsis  of  Moneys  of  Account.) 


148  SHIPMENT   OF   SPECIE   TO    PARIS. 

Exchange  on  France. 

100  Centimes  make  1  Franc. 

1.  What  is  the  cost  of  a  bill  of  exchange  on  Paris  fot 
fr.10277.76— exchange  at  fr.4.89  per  dollar? 

Ans.  $2101.79. 

2.  What  must  be  paid  for  a  bill  on  Paris  for  fr.3875.50, 
at  fr.5.19  per  dollar? 

3.  What  is  the  difference  between  the  Custom-House  value 
of  18.6  cts.  per  franc,  and  exchange  at  fr.5.19  per  dollar,  on 
a  bill  for  58000  francs? 

4.  Estimating  fr.5.21  to  be  the  par  value  of  81,  what  is 
the  premium  on  gold  when  exchange  for  currency  is  quoted 
at  fr.3.45  per  dollar  ? 

PRO  FORMA  ACCOUNT  OP  A  SHIPMENT  OF  MEXICAN 

DOLLARS  FROM  NEW  YORK  TO  PARIS. 

10000  dollars  purchased  at  If  premium,  10175.00 

Packing  Charges,  Shipping,  &c,  7.50 

Marine  Insurance,  at  %f0  on  $10175.00,  50.87 

Policy,  1^_             51.87 

Total  cost  in  New  York,  $10234.37 

Value  in  Paris  10000  dollars  sold  at  fr.5.34  fr. 53400. 00 

Charges  in  Havre  : — 
Import  Duty  and  Permits,  fr.6.40 

Cartage,  Cooperage,  &c,  10.10 

Freight,  \%  on  $10000,        25.00 


Primage,  10%,                          2.50 

At  fr. 5.25,                              $27.50  =  144.37 

160.87 

Charges  in  Paris  : — 
Freight,                                fr.72.25 
Viewing  and  Delivering,         3.25 
Brokerage  £%,  Com.  §fr  = 

£%,                                     333.75 

409.25            570.12 

Net  proceeds,  cash,  in  Paris, 
Add  Interest  for  63  days,  at  4%, 

fr.  52829. 88 
369.80 

Total, 

fr.53199.68 

This  amount  drawn  at  60  days'  sight,  to  realize  the  above 
$10234.37,  w'll  require  the  rate  of  exchange  to  be  fr.5.20  per  dol- 
lar. Withoui  commission  in  Paris,  the  rate  would  be  fr.5.22^,  or 
$%  lower. 


CUSTOM-HOUSE    BUSINESS.  149 


CUSTOM-HOUSE   BUSINESS. 

275.  Custom-Houses  are  houses  or  offices  establisL  ^d  by 
government  for  the  collection  of  duties  on  commodities 
entered  for  importation  or  exportation,  where  bounties  and 
drawbacks  upon  such  importations  or  exportations  are  paid 
or  received,  and  where  vessels  are  entered  and  cleared,  &c. 

276.  Ports  of  Entry  are  places  at  which  custom-houses 
are  established ;  and  it  is  lawful  to  introduce  merchandise  into 
a  country  oifly  at  these  places. 

277.  Vessels  arriving  at  any  port  of  the  United  States  must 
report  at  the  Custom-House  within  twenty-four  hours  after 
their  arrival,  and  within  forty-eight  hours  must  enter,  or 
make  a  further  report,  which  shall  contain  all  the  particulars 
required  to  be  inserted  in  a  manifest. 

278.  Manifests,  or  invoices,  must  be  produced,  containing 
particulars  of  goods,  with  their  cost  in  the  currency  of  the 
country  from  whence  imported.  When  no  invoice  has  been 
received,  and  the  owner  or  consignee  has  testified  under 
oath  that  such  is  the  case,  the  goods  are  entered  by  appraise- 
ment. When  the  value  exceeds  $100,  permission  must  first  be 
obtained  from  the  Secretary  of  the  Treasury  to  enter  in  this 
manner.  If  the  invoice  or  entry  does  not  contain  the  right 
gauge  or  measurement  of  the  goods,  they  must  be  weighed, 
gauged,  or  measured  at  the  expense  of  the  importer.  When 
the  value  of  the  foreign  currency  is  not  fixed  by  any  law  of 
the  United  States,  the  invoice  must  be  accompanied  bv  a 
consular  certificate,  showing  its  value  in  specie,  or  United 
States  dollars ;  and  in  default  thereof,  a  bond  for  the  produc- 
tion of  such  certificate  will  be  required. 

279.  Specific  Duty  is  rated  at  a  specified  amount  upon 
each  article,  ton,  yard,  lb.,  &c,  without  regard  to  its  value. 

280.  Ad- Valorem  Duty  is  rated  at  a  certain  per  cent 

13* 


150  CUSTOM-HOUSE    BUSINESS. 

upon  the  cost  of  the  goods  in  the  country  from  which  they 
were  imported. 

281.  In  estimating  duties,  certain  allowances  are  made  for 
the  package,  waste,  or  damage,  as  it  is  the  design  of  the  gov- 
ernment to  tax  only  so  much  of  the  goods  as  may  actually 
arrive  and  be  available  in  the  market. 

282.  Tare  is  the  allowance  made  for  the  weight  of  the 
package  containing  the  goods,  in  the  manner  prescribed  by 
law.  In  some  cases  it  is  reckoned  at  so  much  per  package, 
sometimes  at  a  certain  percentage,  and  sometimes  by  actual 
weight  or  measurement. 

283.  Draft  is  the  allowance  made  for  waste  or  impurities. 

284.  Leakage  is  an  allowance  made  for  waste  on  liquids. 
Breakage  is  an  allowance  ou  liquors  imported  in  bottles. 

2&5.  Gross  Weight  is  the  entire  weight  of  goods  and 
packages  combined. 

286.  Net  Weight  is  the  weight  after  all  allowances  have 
been  deducted. 

287.  Tonnage  is  the  amount  paid  per  ton  on  the  vessel 
for  permission  to  enter  port. 

288.  Warehousing  is  the  placing  of  goods  in  public 
store,  or  bonded  warehouse,  in  charge  of  the  government, 
when  the  importer  does  not  wish  to  withdraw  the  goods  or 
pay  the  duties  immediately.  All  goods  so  deposited  must  be 
withdrawn,  or  the  duties  thereon  paid,  within  one  year;  and 
all  goods  remaining  beyond  three  years  are  regarded  as  aban- 
doned to  the  government,  and  sold  under  regulations  pre- 
scribed by  the  Secretary  of  the  Treasury. 

289.  A  Custom- House  Broker  is  one  who  attends  to 
making  the  proper  entries  of  goods  at  the  custom-house,  for 
merchants.  As  there  is  a  great  variety  of  points  involving 
special  questions  for  each  separate  invoice,  style  of  merchan- 
dise, and  form  of  entry,»the  services  of  a  responsible  custom- 
house broker  will  materially  aid  those  who  are  inexperienced 


CUSTOM-HOUSE    BUSINESS. 


151 


TABLE  OF  FOREIGN  MONEYS, 

As  fixed  by  law  for  estimating  duties  at  the   United  States 
Custom-House. 

For  all  others  a  consular  certificate  is  required. 


Ducat  of  Naples 

Florin  or  Guilder  of  Austria,  Augs- 
burg, and  Bohemia 

Florin  or  Guilder  of  Frankfort,  Nu- 
remberg, and  Southern  Germany. 

Florin  of  Netherlands 

Florin  of  Trieste 

Franc  of  Fiance  and  Belgium 

Lira  of  Lombardo-Ven.  Kingdom... 

Lira  of  Sardinia 

Lira  of  Tuscany 

Livre  of  Leghorn 

Livre  of  Genoa 

Livre  Tournois  of  France 

Louis  d'or,  or  Rix-dollar  of  Bremen. 

Marc  Banco  of  Hamburg 

Milrea  of  Azores  83J,  Madeira  1.00, 
Portugal  1.12 

Onza  or  Ounce  of  Sicily 

Pagoda  of  India 

Pound  sterling  of  Great  Britain  and 
Ireland,  and  Jamaica 

Pound  sterling  of  Canada,  British 
Provinces,  Newfoundland,  Nova 
Scotia,  and  New  Brunswick 

Pagoda  Star  of  Madras 

Real  Plate  of  Spain 

Real  Yellon  of  Spain 

Rouble  (or  Ruble)  Silver,  Russia.... 

Rupee  of  Company  and  of  British 
India 

Specie  dollar  of  Denaiark 

Specie  dollar  of  Norway 

Specie  dollar  of  Sweden 

Tael  of  China 

Thaler  or  dollar  of  Bremen,  of  72 
grotes 

Thaler  or  Rix-dollar  of  Prussia,  Ber- 
lin, Leipsic,  Northern  Germany, 
and  Saxony 

Dollar  of  Mexico,  Peru,  Chili,  Cen- 
tral America,  and  Cuba 


$.  cts. 


Lower  Denominations. 


.80 

10  carlini 

each,  10  grani. 

A&y2 

60  kreutzers.. 

M 

4  pfennings. 

.40 
.40 

AS]4 

60  kreutzers.. 
100  centimes. 

60  kreutzers.. 
100.  centimes. 
100 

M 
« 

4 

4        " 

20  solidi. 

20  soldi 

.16 
.18A 

.35 

20    "     

20    "     

72  grotes 

16  schillings.. 

12      " 
12     " 

5  schwaren. 
12  pfennings. 

2.40 

1000  reis. 
30  tari 

M 
« 

20  grani. 

48  jittas. 

1.94 

36  fan  an  is 

4.84 

20  shillings... 

M 

12  pence. 

4.00 
1.84 

.10 

.5 

.75 

20 

42  fanams 

34  maravedis 
34 
100  copecks. 

■ 

12      " 
80  cash. 

•44^ 
1.05 
1.06 
1.06 

1.48 

16  annas 

6  marks 

6      "      

48  skilling.... 
10  mace 

M 

12  pvce. 

16  skilling. 

16 

12  oefre. 

10  candareens. 

.71 

72  grotes 

M 

5  schwaren. 

.69 

30  groschen... 

« 

12  pfennings. 

1.00 

8  shillings. 

290.  The  ton  in  all  cases  is  taken  at  2240  lbs.  In  weights  and 
currencies,  less  than  one-half  a  pound  or  one-half  a  dollar  is  dis- 
regarded ;  more  than  one-half  is  taken  as  one. 


152 


CUSTOM-HOUSE    BUSINESS. 


1.  What  is  the  duty  to  be  paid  on  the  following  invoice,  at 
the  rate  of  35  %  ad  valorem  and  50  cents  per  lb.  specific  duty  1 

Invoice  of  Merchandise  purchased  by  Bell  &  Co.  for  account  and 
risk  of  Cade,  Brothers  &  Co.,  Philadelphia,  forwarded  tc 
Liverpool  for  shipment  per  steamer  "Persia." 

Huddersfield,  Eng.,  10th  Dec.  1867. 


'O. 


647 


7  pieces  56  inch  Fancy  Coatings 
(all  wool). 

#1128         46*         #1136         43 * 

1130  45       1138    45* 

1131  46*    .  1161    46* 

1137         45£  damage, 

Deduct  ^7  overmeasure, 

.    7  ps.  making  up, 
Sample  Card,  3/-,  Case,  23/-,  Carriage,  b  e, 

Commission,  2£  per  cent., 

2£  per  cent,  discount  on  £173. 19. 1., 

Consul's  certificate, 


Gross  Weight,  654  lbs. 
Net  "       539   ■ 


Cash,  Dec.  10,  1867. 


yds. 


319* 
1? 


,317* 
309± 


173 

1 


175 
4 


180 
4 


175 


£171 


Extract  from  Bill  of  Lading. 


*>" 


Feet.  In. 

35—3    @  45/- per  ton,  £1.  9.    8 
Primage,         1.  11 

£2.  1.    7 


Shipped  by  Weston  &  Co.,  on  "  Persia,"  from 
Liverpool  to  New  York,  one  Case,  marked  as  pr. 
margin,  and  consigned  to  Cade,  Bros.  &  Co., 
Philadelphia.  Liverpool,  13th  Dec.  /67. 


NoTE.-^-The    ton    is    a    ton    measurement, 
40  cubic  feet ;  the  Case  is  35  cubic  feet  3  in. 
35i 
-jj*-  of  45  shillings  —  £1.  9.  8.  for  freight. 


Shipping  Charges. 

Charges  on  Case  ^f   \  547,  shipped  by  Weston  &  Co.  pr.  Persia  for  New  York,  cco- 

signed  to  Cade,  Bros.  &  Co.,  by  order  of  Bell  &  Co.,  Huddersfield. 

1.    11 

1.  6 

2.  9 
2.      6 


Dues  and  entry  at  Customs, 
Bills  of  Lading, 
Cartage, 

Commission, 


£8.      8 


Liverpool,  13th  Dec.  /67. 


CUSTOM-HOUSE    BUSINESS.  Lo'd 


Duty. 


Invoice  Value,  £176.     5.  4 

Deduct  Consul  fee,  not  dutiable,  10.  4 


Liverpool  charges, 


£176.    3.  8 
Woolens. 
£176.  3.  8.,  at  $4.84,  =  $853,  duty  35  per  cent.,  $298.55 

lbs.— 539,  "    60  cts.,  269.50 

Duty, $568.06 


2.  Imported  25  bags  canary-seed,  weighing  5920  lbs.,  the 
tare  of  which  was  75  lbs.,  and  paid  duty  of  SI  per  bushel  of 
60  lbs.     How  much  did  I  pay? 

3.  Imported  from  England,  per  brig  Wellington,  24  sacks 
wool,  weighing  2560  lbs.,  invoiced  at  Is.  3d.  per  lb.  How 
much  duty  did  I  pay,  the  rate  being  10  cents  per  lb.  and 
11  per  cent,  ad  valorem?     3%  tare  allowed.     Ans.  $333.50. 

4.  Paid  duties,  at  35%  ad  valorem,  on  goods  imported  from 
France  at  fr.  7325.25.     How  much  did  I  pay? 

5.  H.  J.  Claflin  &  Co.  imported  10  cases  white  muslins, 
2055  ps.  of  20  yds.  each.  \\  yds.  wide,  on  which  they  paid 
duties  at  4£  cts.  per  square  yard.  The  goods  cost  2hd.  pr.  yard, 
and  the  charges  in  Manchester  amounted  to  £49  16s.  6d.  If 
they  remitted  bills  of  exchange  purchased  at  9?%  premium 
in  gold,  and  gold  was  at  a  premium  of  33£  % ,  what  was  the 
total  cost?  Ans.  Duties,  $2911.25;  total  cost,  $6016.49. 

6.  Morse,  Shepard  &  Co.  received  per  "Aurora,"  from 
Paris,  5  cases  shawls,  weighing  1123  lbs.  and  invoiced  at 
fr.  12,225,  on  which  they  paid  duties  at  22  cts.  per  lb.  and 
35  per  cent,  ad  valorem.  How  much  were  the  duties,  and 
how  much  did  a  bill  of  exchange  on  Paris  to  pay  for  the 
invoice  cost,  if  purchased  at  fr.  5.08? 

Ans.  Duties,  $1042.91;  Exch.,  $2406.50. 

7.  Imported  1  case  shawls,  weighing  220  lbs.,  which  cost 
£110  10s.,  and  paid  as  duty  40  cts.  per  lb.  and  35  per  cent, 
ad  valorem ;  2  cases  white  muslin,  containing  6845  yds.,  and 
costing  £105  15s.,  the  duty  on  which  was  3  cts.  per  square 
yard.  How  much  did  the  goods  cost  me,  if  I  paid  9£  per 
cent,  exchange  premium,  and  41  per  cent,  premium  in  gold? 


154  PROFIT    AND    LOSS. 


PROFIT  AND  LOSS. 

291.  The  difference  between  the  cost  of  an  article  and 
the  amount  received  for  it  is  the  gain  or  loss. 

292.  The  cost  of  goods  consists  of  the  price  paid  to  thi 
person  from  whom  they  were  purchased,  or  the  expense  of 
producing  them,  and  all  charges,  such  as  commissions,  freight, 
packing,  duties,  exchange,  insurance,  drayage,  &c,  necessary 
to  place  the  goods  in  a  condition  ready  for  use  or  sale. 

TOTAL  GAINS  AND  LOSSES. 

293.  The  total  gains  or  losses  on  goods  may  be  easily  ascer- 
tained, when  all  are  sold,  by  taking  the  difference  between 
the  cost  and  selling  price ;  but  when  part  remains  unsold — 

Rule  I. — Add  the  value  of  the  merchandise  unsold  to  the 
amount  received  for  sales,  and  take  the  difference  between  the 
sum  thus  obtained  and  the  cost  of  the  merchandise  ;  the  differ- 
ence will  be  the  gain  or  loss.     Or, 

Rule  II. — Find  the  difference  between  the  amount  of  sales 
and  the  cost  of  the  merchandise  ;    then — 

When  there  is  an  excess  of  cost  over  sales — 
If  the  value  of  the  goods  remaining  unsold  is  more  than 
this  excess,  the  difference  is  a  gain. 

If  the  value  of  the  goods  is  less,  the  difference  is  a  loss. 

"When  the  sales  exceed  the  cost — 
Add  the  value  of  the  goods  unsold  to  the  difference  between 
the  SALES  and  the  COST ;   the  result  will  be  the  gain. 

294.  In  estimating  the  value  of  goods  remaining  unsold,  when 
an  "account  of  stock"  is  taken,  it  is  customary  to  use  the  invoice 
>r  purchase  price ;  but  if  the  market  value  of  the  goods  has  depre- 
ciated, either  from  the  nature  of  the  goods  or  the  state  of  the  mar- 
ket, or  if  there  has  been  a  decided  advance  in  prices,  an  allowance 
must  be  made  accordingly.  A  safe  rule  is,  if  they  are  salable 
goods,  to  estimate  them  at  what  it  would  cost  to  replace  them. 


PROFIT  AND  LOSS.  155 

GAINS  AND  LOSSES  ON  PARTICULAR  GOODS. 

295.  Case  I. — To  find  the  gain  or  loss,  when  the  cost  and 
rate  per  cent,  are  given. 

Rule. — Multiply  the  cost  by  the  rate  per  cent ,  and  divide 

by  100. 

Note. — The  selling  price  is  found  by  adding  the  gain  to  the  cost,  or 
deducting  the  loss. 

EXAMPLES. 

1.  Bought  broadcloth  for  $250,  and  sold  it  at  15%  ad- 
vance.    How  much  did  I  gain  ?  ' 

250  X  15  =  3750  $37.50,  Ans. 

2.  How  much  do  I  gain  per  barrel,  if  I  sell  flour  which 
cost  $11  per  bbl.  at  a  profit  of  25%  ?  Ans.  $2.75. 

^3.  Bought  a  cargo  of  wheat  for  $11500,  and  sold  it  at  a 
profit  of  16?%.      How  much  did  I  gain  ? 

4.  A  merchant  purchased  a  quantity  of  lumber  for  $2200. 
He  paid  for  freight  and  drayage  $75  j  commission  for  selling, 
$125.  He  gained  27%  on  the  entire  cost.  How  much  was 
it  sold  for,  and  how  much  did  he  make  ? 

5.  Bought  100  barrels  of  sugar  for  $1500.75,  which  I  sold 
at  an  advance  of  12£%.  How  much  did  I  gain,  and  how 
much  did  I  receive  t 

6.  What  difference  will  it  make  in  the  cost  per  yard  to  the 
American  merchant  who  buys  his  goods  in  England  for  $4 
per  vard,  and  pays  a  duty  of  30  %  on  them,  if  the  price  in 
England  is  reduced  to  $3  per  yard  ? 

EXAMPLES. 

7.  What  is  the  selling  price  of  the  following  goods  at  25% 
above  the  given  price  ? 

5  gross  steel  pens,  !*£  ~,  ±%   (See  Abbreviations.) 
20  diamond  satin  bonnets,  @  30c. 
50  doz.  tassels,  @  $1.50  per  doz. 

1  case,  12  pairs  men's  calf  sewed  boots,  @  $4. 

3     "     60     "      misses'  lasting  gaiter  boots.  @  $1.40. 

8  ps.  mousseline  de  laine,  240  yds.,  @  60c. 

12  doz.  bl'k  Italian  cravats,  @      '^,  ^,  ^. 


[56  PROFIT   AND    LOSS. 

206.  Case  II. — To  find  the  rate  per  cent.,  when  the  gain 
or  loss,  or  cost  and  selling  price,  are  given. 

Rule. — Multiply  the  gain  or  loss  by  100,  and  divide  the 
product  by  the  cost. 

EXAMPLES. 

1.  Sold  a  house  for  $7995,  which  cost  me  $6500.  What 
per  cent,  did  I  gain  ? 

7995  —  6500  =  1495        1495  X  100  =  149500 
149500  ~  6500  =  23.  Ans.  23%, 

2.  Bought  a  cargo  of  flour  for  $18000,  and  sold  it  for 
$20000.     What  per  cent,  did  I  gain  ? 

3.  If  by  a  decline  of  prices  I  was  obliged  to  sell  a  lot  of 
coffee  for  $2200  which  cost  me  $2500,  what  per  cent,  did  I 
lose  ? 

4.  A  merchant  bought  a  quantity  of  silks  at  $2.50  per 
yard,  and  sold  them  at  $2.87£.    What  per  cent,  did  he  make? 

207.  Case  III. — To  ascertain  the  cost,  when  the  selling 
price  and  rate  per  cent,  gained  or  lost  are  given. 

Rule. — Multiply  the  selling  price  by  100,  and  divide  the 
product  by  100  increased  by  the  gain  per  cent,  or  diminished 
by  the  loss  per  cent. 

EXAMPLES. 

1.  An  invoice  of  goods  purchased  in  England  was  sold  for 
$3600,  realizing  a  gain  of  20%.     What  was  the  cost  ? 

100  +  20  =  120  360000  -j-  120  =  3000. 

Ans.  $3000. 

2.  A  merchant  sold  sugar  for  $1260,  by  which  he  lost 
10%.     What  was  the  cost  ? 

100  — 10  =  90  126000  -r-  90  =  1400. 

Ans.  $1400 

208.  Case  IV. — To  find  the  cost,  when  the  gain  or  loss 
and  the  rate  per  cent,  are  given. 

Rule. — Multiply  the  gain  or  loss  by  100,  and  divide  the 
product  by  the  rate  per  cent. 


PROFIT  AND   LOSS.  157 

EXAMPLES. 

1.  I  gained  $2250  by  selling  goods  at  a  profit  of  15%. 
What  did  they  cost  ? 

225000  -j-  15  =  15000.  Ans.  $15000. 

2.  How  large  sales  must  I  make,  at  a  profit  of  12£  per 
cent.,  to  clear  $3000  ?  Ans.  $24000. 

3.  Sold  flour  at  an  advance  of  20  % ,  and  gained  $136. 
What  did  it  cost  ? 

299.  Case  V. — To  find  the  rate,  when  the  cost  and  gain 
or  loss  are  given. 

Rule. — Multiply  the  gain  or  loss  by  100 \  and  divide  by 
the  cost. 

EXAMPLES. 

1.  Bought  goods  for  $1875,  and  sold  them  so  as  to  gain 
$468.75.     What  was  the  rate  per  cent.  ? 

46875  -*-  1875  =  25.  Ans.  25  % . 

2.  Sold  teas  which  cost  me  45  cts.  per  pound,  and  gained 
9  cts.  per  pound.     What  was  the  rate  of  gain  ? 

3.  A  merchant  sold  corn  which  cost  him  $325,  and  gained 
$48.75.     What  was  the  gain  per  cent.  ? 

4.  If  the  United  States  wine  gallon  contains  231  cubic 
inches,  and  the  beer  gallon  282  cubic  inches,  what  per  cent, 
is  the  latter  larger  than  the  former  ? 

5.  What  per  cent,  do  I  gain  if  I  sell  cloth  which  cost 
$2.50  for  $3.75  per  yard  ? 

300.  To  find  what  the  gain  or  loss  per  cent,  would  be  if 
sold  at  another  price,  the  selling  price  and  rate  per  cent,  of 
gain  or  loss  being  given. 

Rule. — Multiply  the  proposed  selling  price  by  100,  in- 
creased by  the  given  rate  per  cent,  gained,  or  diminished  by 
the  given  per  cent,  of  loss,  and  divide  the  product  by  the 
actual  selling  price,  and  take  the  difference  between  the  quo- 
tient and  100. 

14 


158  PREMIUM    AND    DISCOUNT. 


EXAMPLES. 


1.  If  by  selling  cloth  at  $5  per  yard  I  gain  25%,  what  per 
cent,  will  I  gain  if  I  sell  it  at  $6  per  yard  ? 

100  +  25  =  125     125  X  6  =  750 

750 -=-5  =  150    150  —  100  =  50.  Ans.  50%. 

2.  Sold  flour  for  $10,  and    lost  20%.      What  per  cent, 
would  I  have  lost  if  I  had  sold  it  for  $8  ?  Ans.  36%. 


PREMIUM   AND   DISCOUNT. 

301.  Premium  is  the  percentage  by  which  an  amount  is 
increased.  Discount,  the  percentage  by  which  an  amount 
is  diminished. 

302.  In  purchasing  one  currency  with  another  of  different 
value,  the  discount  on  that  of  the  highest  value  is  not  the 
same  as  the  premium  on  that  of  the  lowest  at  the  same  rate. 

SI 00  in  currency,  at  a  discount  of  5%,  is  worth  $95  in  gold. 
$95  in  gold,  at  a  premium  of  5%,  is  worth  95+4.75  =  99.75. 

303.  Merchants  are  usually  allowed  a  discount  of  5%  on 
invoices  and  bills  purchased  at  6  months'  credit,  for  cash  pay- 
ment within  30  days.  The  5%  is  allowed  on  the  amount  of 
the  bill  or  invoice;  but  often,  when  part  is  paid,  the  discount 
is  calculated  on  the  cash  payment,  instead  of  on  the  propor- 
tion of  the  bill  settled,  which  causes  a  loss  to  the  purchaser. 
If  an  invoice  costs  $2500,  and  $1900  is  paid,  it  will  cancel 
$2000,  thus  saving  to  the  purchaser  $100;  but  if  the  5  %  is 
calculated  on  $1900,  the  amount  paid,  the  payment  will 
cancel  only  $1995,  making  a  difference  of  $5  between  the 
two  methods. 

304.  To  find  what  amount  is  settled  when  part  only  is 
paid,  a  discount  on  sales  being  allowed  for  prompt  payment. 

Rule. — Annex  two  ciphers  to  the  cash  payment,  and  divide 
by  100  less  the  rate  per  cent,  of  discount. 

100  —  5  =  95     190000  -*-  95  =  2000.  Ana.  $2000. 


GOLD    AND    CURRENCY. 


159 


By  Analysis. — If  5f0  discount  is  allowed,  $95  will  pay  a  bill  of 
$100,  and  $1900  will  pay  as  many  hundreds  as  95  is  contained  times 
in  it,  =  2000,  the  answer. 

By  Proportion.— 95  :  100  :  :  1900  :  2000. 

The  difference  between  5f0  on  the  amount  of  invoice  and  5%  on 
the  amount  of  cash  paid  equals  25  cents  for  every  $100  of  the  in- 
voice; at  Qfc,  the  difference  equals  36  cts. ;  at  3^>,  9  cts. 


TABLE 

Showing  the  Comparative  Value  of  Gold  and  Currency. 


When  $1  in  Gold  is  sold  for 

The  Discount 

The  Amount  in  Gold  which  can 

Currency  at 

on  Currency  is 

be  bought  for  $100 

in  Currency. 

1.05 

or 

5  per  cent. 

Prein. 

4.77  per  cent. 

$95.23 

>r 

$95,y5 

8635 
83f 

accurately. 

1.10 

" 

10 

" 

9.10       " 

90.90 

" 

" 

1.15 

" 

15 

" 

13.04       " 

86.96 

" 

" 

1.20 

" 

20 

" 

16.67       " 

83.33 

" 

H 

1.25 

" 

25 

" 

20.00       " 

80.00 

" 

80 

" 

1.30 

u 

30 

" 

23.08       " 

76.92 

" 

7<5|§ 

(t 

1.40 

" 

40 

{< 

28.58 .     " 

71.42 

(i 

(i 

1.50 

" 

50        • 

u 

33.33       " 

66.66 

" 

66| 

cc 

1.60 

M 

60 

" 

37.50       " 

62.50 

H 

62^ 

" 

1.70 

H 

70        ' 

" 

41.18       " 

58.82 

" 

681* 

55§ 

" 

1.80 

" 

80        « 

" 

44.45       " 

55.55 

" 

H 

1.90 

" 

90 

M 

47.37       " 

52.63 

" 

52l§ 

" 

2.00 

" 

100 

" 

50.00       " 

50.00 

(t 

50 

<( 

2.50 

H 

150 

" 

60.00       " 

40.00 

" 

40 

" 

5.00 

" 

400 

" 

80.00       " 

20.00 

" 

20 

" 

7.50 

" 

650 

" 

86.67       " 

13.33 

H 

13} 

" 

10.00 

" 

900        ' 

" 

90.00       " 

10.00 

" 

10 

" 

50.00 

u 

4900        ' 

" 

98.00       " 

2.00 

" 

2 

" 

100.00 

H 

9900 

M 

99.00       " 

1.00 

" 

1 

u 

The  accuracy  of  the  above  figures  can  be  tested  by  simply  adding 
to  those  in  the  last  column  that  per  cent,  of  each  which  is  desig- 
nated in  the  column  containing  the  rate  of  premium. 

The  above  Table  may  also  be  used  for  finding  what  rate  taken  off 
the  selling  price  is  equivalent  to  a  certain  rate  added  to  the  cost  or 
purchase  price.  For  instance,  20  f0,  as  shown  in  the  discount 
column,  deducted,  is  equivalent  to  25%  added  to  the  remainder,  as 
shown  in  the  premium  column. 

To  find  how  much  gold  can  be  bought  for  a  given  amount  of  cur- 
rency. Multiply  the  amount  of  currency  by  100,  and  divide  the  product 
by  100  increased  by  the  rate  of  premium  on  gold. 


160 


DISCOUNTING   BILLS   AND   INVOICES. 


DISCOUNTING  BILLS  AND  INVOICES. 

305.  In  discounting  Bills  and  Invoices,  losses  sometimes 
occur  when  they  are  not  suspected.  If  an  article  is  sold  afr 
a  profit  of  40%,  and  10  %  be  deducted  from  the  selling  price, 
the  gain  is  not  30%,  but  26%,  because  the  discount  is  calcu- 
lated on  the  first  cost  and  also  on  the  profit,  whereas  the  profit 
is  calculated  on  the  first  cost  only.  So,  also,  if  40  %  be  added, 
and  then  30%  deducted,  the  apparent  profit  is  10  %,  but  the 
real  loss  is  2  % . 


Cost,                             $200 
40  per  cent.,                     80 

Cost, 

40  per  cent., 

$1.00 
.40 

Advanced  price,             280 
Less  10  per  cent.,             28 

Advanced  price, 
Less  30  per  cent., 

1.40 
.42 

Cash  price,                      252 
26  per  cent,  profit. 

Cash  price, 

2  per  cent.  loss. 

.98 

10  per  cent,  of  $200 

(cost)                      =  $20 
10  per  cent,  of  $80 

(profit)                    =      8 

30  per  cent,  of  $1.00 

(cost) 
30  per  cent  of  .40 

(profit) 

=  .30 
=  .12 

$28 
=  14  per  ct.  of  cost. 

.42 

or  42  per  ct.  of  cost. 

Ex.  3. — What  is  the  difference  between  discounting  a 
bill  of  $1200  at  40%,  and  then  taking  a  discount  off  the  re- 
mainder of  5%  for  cash  payment,  and  discounting  the  whole 
bill  at  45%? 

Ex.  4.  — If  a  merchant  buys  a  book  at  a  discount  of  20% 
on  the  retail  price,  and  sells  it  at  the  retail  price,  what  per 
cent,  on  the  purchase-price  does  he  gain  ?  What  per  cent, 
does  he  gain  if  he  buys  at  33 £  %  discount  and  sells  it  at  the 
retail  price  1 

306.  To  find  the  selling  price  from  which  a  certain  per 
cent,  may  be  deducted  and  the  goods  sold  at  cost,  or  a  given 
per  cent,  above  or  below  cost. 


DISCOUNTING    BILLS   AND    INVOICES.  161 

Rule. — To  sell  at  cost. 

Multiply  the  cost  by  100,  and  divide  the  product  by  100 
diminished  by  the  rate  per  cent,  to  be  deducted. 

To  sell  at  a  given  rate  per  cent,  above  or  below  cost. 

Multiply  100  increased  by  the  per  cent,  to  be  gained  or 
diminished  by  the  per  cent,  to  be  lost,  by  the  cost,  and  divide 
the  product  by  100  diminished  by  the  rate  to  be  deducted  from 
the  selling  price. 

EXAMPLES. 

1.  Bought  goods  for  $100  :  for  how  much  shall  I  sell  them 
that  I  may  deduct  20%  and  yet  obtain  what  they  cost? 

100  X  100  =  10000 

10000  h-  80  =  125.       Ans.  $125. 

2.  For  what  must  I  sell  goods  worth  $100,  so  that  I  may 
deduct  45  %  and  yet  gain  30%  ? 

100  +  30  =  130  100  X  130  =  13000 

13000  -s-  55  =  236.31.  Ans.  $236.36. 

Note.— 236.36  =  136.36^  advance  on  100.  When  a  long  list  ia 
to  be  made  out  at  a  uniform  rate  of  profit,  labor  may  be  saved  by 
adding  the  total  advance  at  once. 

3.  If  I  buy  cloth  for  $1.90  per  yard,  at  what  price  must 
I  mark  it,  that  I  may  deduct  5%  for  my  cash  customers  from 
the  marked  price,  and  yet  gain  20%  ?  Ans.  $2.40. 

4.  A  bookseller  wishes  to  increase  the  price  of  a  book 
which  he  now  sells  for  $2,  so  that  he  can  deduct  20  %  and 
yet  receive  the  present  price.  What  must  be  the  advanced 
price  ? 

5.  A  dry-goods  merchant  sells  cloths  for  $168,  by  which 
he  gains  20%.  What  must  be  the  advanced  price  so  that 
he  can  deduct  5  %  and  still  make  the  same  profit  ? 

6.  What  must  be  the  price  from  which  20  %  may  be  de- 
ducted and  leave  40  cts.  ? 

7.  Bought  cassimeres  for  $1.20  per  yard :  at  what  price 
must  they  be  sold  that  5  %  may  be  deducted  for  cash  pay- 
ment and  leave  a  profit  of  25  %  ? 

8.  Find  the  selling  price  of  French  plate  glass  that  cost 
$60  per  light,  from  which  45%  may  be  deducted  and  30% 
gained  on  cost. 

L  14* 


162 


DISCOUNTING    BILLS   AND    INVOICES. 


What  is  the  selling  price  of  the  goods  in  the  following  in- 
voice, so  that  25%  may  be  gained  on  the  prices  given,  and 
yet  allow  a  discount  of  5  %  for  cash  payment  ? 

Philadelphia,  April  20,  18G7. 
Mr.  Chas.  P.  Gregory 

BoH  of  J.  J.  Bailey  &  Co. 


1  doz.  long  shawls,  @  $6  75 

2  pieces  sheeting,  30.35  yds.,  "        .15 
6  doz.  linen  hdkfs.,  "      3.00 

3  pieces  twilled  muslin,  84  yds.,        "        .20 
1  piece  mousseline  de  laine,  32  yds.,  u        .24 


81 


00 


J.  Harris  Brown 


Philadelphia,  March  12,  1867. 
BoH  of  Myers  &  Claghorn. 


240  yds.  ingrain  carpet,  @  $1.20, 
Less  5%, 

Rec'd  payment, 

Myers  &  Claghorn, 

per  J.  B.  Jones. 

Freight  and  other  expenses  to  Madison, 


288 
14 


$273 


21 


$295 


00 
40 
60 


89 
49 


At  what  must  I  sell  the  carpeting  per  yard,  to  gain  20  % 
and  allow  a  discount  of  10%  from  selling  price? 

Solution.— 5%  of  $1.20  =  6^.  1.20  —  6  =  1.14,  net 
cash  price  per  yard  in  Philadelphia.  Charges,  21.89  =8% 
of  total  cost  in  Philadelphia.  8  %  of  1.14  =  9-f .  1.14  + 
9  =  $1.23,  advanced  cost  per  yard. 

Proof.— -240  yds.  @  $1.23  =  $295.20,  which,  allowing  for  frac- 
tions, is  the  cost  of  the  invoice. 

20%  of  $1.23  =  25/,  nearly;  adding  this  to  the  cost,  we  have  $1.48 
as  the  amount  to  be  received.  Then,  to  obtain  the  selling  price, 
100—10  =  90         148-5-90  =  1.04-}-.  Ans.  $1.64  per  yd. 

Proof— IQ  5&  of  1.64  =  10-f-         1.64  -  16  =  1.48. 


PRICE    LISTS. 


163 


PRICE  LISTS. 
307.  Price  Lists  are  made  out  by  manufacturers  and 
dealers,  as  prices  to  be  charged,  subject  to  the  deductions 
of  certain  rates  per  cent.,  which  fluctuate  according  to  the  cost 
of  manufacturing,  demand  for  the  goods,  etc.  By  changing 
the  rate  of  discount,  the  prices  are  changed  without  altering 
the  price  lists. 

EXTRACT  FROM  PRICE-LIST  OF  CLARKS0N   &  CO., 

MANUFACTURERS   AND  IMPORTERS  OF   BRUSHES. 

Terms,  net  cash.  PHILADELPHIA.  January  1,  1868. 

Ground  Paint  Brushes.  Kalsomine  Brushes. 


Wire  Bound. 

5  in., 

per  doz., 

$24.00 

6  in., 

" 

33.00 

No.  6,  per  doz.,  $2.00 

7  in., 

u 

42.00 

«    5,     "      «        2.50 

8  in., 

u 

48.00 

"    4,     "      "        3.00 

9  in., 

n 

57.00 

"    3,    "      •«        3.50 

HOOPES  &  TOWNSEND'S  OARRI AGE-BOLT  WORKS. 

PRICE   LIST   PER   HUNDRED. 


£  in.  diameter,  $i 


1  in 

2 

8 

2 
8 

2 
3 


20  per  cent,  discount  to  the  trade. 

If  a  discount  of  20%  on  the  above  prices  is  allowed,  leav- 
ing a  net  gain  of  10%,  what  is  the  cost  of  manufacture? 

Find  the  selling  price  of  the  following  goods,  so  that  a 
discount  of  10%  may  be  deducted  and  leave  a  gain  of  15%. 
The  prices  annexed  show  the  cost. 


2.50 

Tire  Bolts. 

3.10 
3.65 

A  in-> 

$1.50 

4.55 

H  " 

1.68 

6.25 

2|    " 

1.75 

7.64 

2  A  " 

2.41 

8.48 

To 

Wrought 

Axle  Clips. 

Size, 

0.         1. 

2.         3. 

4. 

le. 

Price 

$1.05.   1.05.   1.05.   1.10. 

1.20. 

100  Amer.  Glass,  $1.40  each. 

10C  Tire  Bolts,  T\  in..  $1.00. 

200  yards  Muslin,  20/. 

100  gross  Pens,  @  90/*. 

25  ounces  Carmine  Ink,  $2.00. 


50  yards  Broadcloth,  $2.40. 
75  Amer.  Cyclopedias,  $60.00. 
80  packs  Enamelled  Cards,  40/ 
25  gross  Lead  Pencils,  $3.00. 
400  lbs.  Letter  Paper,  35/. 


164 


ADVANCED    COST    OF   INVOICES. 


Invoice  of  Merchandise,  marked  as  in  the  margin,  and  forwarded 
by  J.  Powers  &  Co.,  Philadelphia,  per  Penna.  P.P.,  to  Messrs. 
Brown  &  Gregg,  Chicago,  as  per  their  order  and  at  their  risk. 


B.&G. 

25  Boxes  Valencia  Raisins, 
Gross  weight, 
Tare,  4£  lbs.  per  box, 

710  lbs. 
112£  " 

597  £  @  15  cts. 

89 

«*h 

B.  AG. 

5  Bags  Canary  Seed, 

1184  lbs.  — 15  lbs.  tare  =  1169  net, 
19^3  busUels  @  4.85, 

94 

49 

B.AG. 

10  Bbls.  Currants,  266,  254,  236,  264,  244,  243, 
260,  260,  260,  243, 
Total,                                                    2530 
Tare,  26  lbs.  per  bbl.                            260  ' 

2270  @  18c. 

408 

60 

B.  AG. 

10  Boxes  Castile  Soap,  406  lbs. 
Tare,  8  lbs.  per  box,      80 

326  lbs.  @  14c. 

45 

64 

B.AG. 

5  Cases  £  Sardines, 

500  boxes  @  35c. 

175 

00 

813 

35 

Cartage, 

Ins.  on  $900  @  £  per  cent. 

3.00 
4.50 

7 

50 

820 

85 

Rec'd  Payment, 

J.  Powers  &  Co. 

Charges  in  Chicago  : — 
Freight  on  4050  lbs. 
Cartage, 


$1.10  per  h'd. 


44.55 

3.00 

47.55 


Total  charges  equal  7%,  nearly,  of  first  cost  of  goods. 
What  must  be  the  selling  prices  in  the  above  invoice,  that  I  may 
gain  30%? 

SOLUTION. 
Total  invoice  price,  $813.35 

Charges  in  Philada.  $7.50 

Chicago,  47.55         55.05 

Total  cost,  "    $868.40 

55.05  =  7%,  nearly,  of  $813.35. 
Invoice  Price.  Selling  Price. 

Raisins,  15c.  -f-  7%  =     16c.k  increased  30%  =    .21 

Canary  Seed,        4.85     -f  "     =5.19  "  "     =6.75 

Currants,  .18     -f   «     =    .19  "  "     =    .25 

Castile  Soap,  .14     -j-  "    =    -15  "  "     =    -20 

Sardines,  .35     -f  "     =    -37  "  "     =   -48 

The  above  is  given  simply  as  an  exercise  in  calculation.     Goods 
are  not  generally  sold  it  a  uniform  rate  of  profit. 


INVOICE    FROM    LIVERPOOL. 


165 


Invoice  of  Queensware  shipped  by  George  Hammejisly,  Liver' 
pool,  Eng.,  per  "Emily  Augusta"  and  consigned  to  MESSES. 
Field  &  Cogley,  Philadelphia,  for  their  account  and  at  their 
risk. 


o*«a 

36  Teapots,  Tf   Hi  "  Niagara"  F.  Gold 
Band 

18  Sugars,    24  "  Niagara"  I .  Gold  Band  . 

18  Creams,  24         "                      " 

27/- 
12 

£. 

2 

1 

ft, 

7 

9 

i 
S 

8 

£. 

».  d. 

20  Bowls,     30         "                      " 

8/- 

5 

4 

14  doz.  Teas  unhd.  "                      " 

5/- 

3 

10 

27    "   Plates,  I  @  2/-,  27°  (&  3/-,  f  @ 
3/6,  "  Niagara"  F.  Gold  Band 

5    "    Dishes,  A  @  9/-,  T2T  @  15/-,  T*j 
@  21/-,  "Niagara"  F.  G'd  Band 

3 
3 

18 
9 

6 

2*              21 

5    "   Bakers',  7  @  6/-,   8  @  9/-,  "Nia- 
gara" F.  Gold  Band   . 

1 

17 

6 

6  Cover  dishes,  92,  "  Niagara"  F.  Gd.  Bd. 

2/3 

13 

6 

4  Sauce  Tureens  Comp.,  M              " 

2/6 

10 

13  Pickles,                         "              " 
25  per  cent,  discount, 

Crate  and  Straw       .       . 

6 



5 

- 

18 

41 

13  1 
1 

5    4 

1    4 

i 
3    6 

Shipping  Charges      .... 

14  1 

9  10 
1    4 

Ft.  In. 

65   11     Freight  13/-        ....... 

$3 

12 

£14. 17s.  4d.  at  par  = 

66 

08 

Exchange,  10£  per  cent 

6 

76 

Insurance,  1£  per  cent.  @  $5  per.  £.*.., 

1 

12 

Duties  and  Entry 

18 

70 

Interest  from  Shipment, 

54 

$96 

32 

What  is  the  value  of  a  shilling  in  the  above  invoice  at  the 
advanced  cost  price  ? 


160 


INVOICE    FROM    BIRMINGHAM. 


Find  the  percentage  of  the  particular  chargis  and  of  the 
general  charges  of  the  following  invoice;  and,  also,  find  the 
percentage  to  be  added  to  allow  a  discount  of  5%  from  the 
selling  price  and  retain  a  profit  of  25%. 

Birmingham,  Eng.,  April  30, 1867. 
Invoice  of  Hardware  purchased  by  order  and  for  account  and  risk 
of  H.  L.  Harrison  &  Bro.,  Philadelphia,  and  forwarded  to 
Messrs.  Alfred  Field  &  Co.,  Liverpool,  for  shipment 


II.  L.  II. 
170 

13/6 
£  doz.  Jap'd  Oval  Trays,  10883,  24  in.     . 

£. 

0 

d. 
9 

1 

11/-           8/- 
i    "        "        "         "       ea.  10882,       10778,    20  in. 

9 

, 

, 

7/3      8/6     10/-    11/6 
2    "    Oval  Trays,  7128,  ea.  18,      20,      22,     24, 

in  i  dozs 

3 

14 

6 

4 

10 

9 

Extra  pap'g  2  parcels  id.,  and  1  @  8d.     . 
Case,  &c,  5/6;  Freight  to  Liverpool,  4/-   . 

9 

9 
6 

171 

5 

1 

0 

9/9 
12  doz.  Painted  Scale  Beams,  No.  B,  12  in.    . 
65  per  cent,  discount 

8/-    9/-    10/6  14/- 
10  gro.  Tin'd  Kettle-Ears,  ea.  A,      B,      0,      1, 

5 
3 

17 
16 

1 

2 

0 

11 

16/-    20/-    23/6 

2,       3,        4, 

77i  per  cent,  discount    . 

50 

39 

10 

9 

11 

7 

3 

Cask,  &c,  7/6;  Freight  to  Liverpool,  12/3 

19 

9 

169 

14 

7 

11 

4/-  2/-    )  cwt.  qr.  lb. 
4  doz.  Brt.  Ov.  Bake  Pans,  ea.         1.3  V    5      1     ft 
3    "          "               ■           "           4.5)  @7d.^lb. 
40  per  cent,  discount 

17 
6 

ft 
IS 

11 

4 

:o 

Cask,  Ac,  6/-;  Freight  to  Liverpool,  6/6  . 

ii 

12 

0 

6 

Amount  of  Case,  170 

"         "   Cask,  171 

"         ■      "      169 

5 

14 
11 

l 

7 

0 

t() 
11 
1 

Commission,  4  per  cent. . 
Dock  and  Town  Dues,  1/3;   Cartage,  Porterage, 

Ac,  4/6;  Shipping,  3/- 

Bills  of  Lading,  1/6;  Canal  Ins.  1  per  cent.,  3/2; 

Consul's  fee,  11/- 

s 
15 

9 

S 

30 

1 

1 

9 
5 

0 

a 

5 

pro  ALFRED  FIELD  &  CO. 

32 

is 

1 

W.   MlNCHER. 

CHARGES    ON    FOREIGN    INVOICES.  167 

Charges  on  arrival  in  Philadelphia : — 

Duties  on  case  170,  $24,  @  40%,  9.60 

«       »  cases  171,  169,  $123,  @  35%,  43.05       52.65 

Brokerage,  2.00 

Fees,  &c,  2.75,  Triplicate  Invoice,  1.25,  4.00 

Cartage,  3-00 

Bonded  Warehouse  Fees.  7.00 

Freight  from  Liverpool,  18.35 

Add  Exch.  prem.  of  9£  per  cent,  on  X32  18s.  7d.         87.00 

In  reckoning  the  cost  of  goods,  the  amount  of  all  the 
charges  is  found,  and  then  the  invoice  price  of  each  article  is 
increased  in  the  proportion  that  the  charges  bear  to  the  pur- 
chase price  of  the  goods.  The  profits  are  to  be  added  after 
finding  the  total  cost. 

In  foreign  invoices,  when  the  prices  are  in  pounds,  shil- 
lings, or  francs,  it  is  frequently  found  convenient  to  increase 
the  true  value  of  the  pound  or  franc  in  the  proportion  that 
the  charges  bear  to  the  purchase  price,  and  then  obtain  the 
total  cost  of  each  article  by  taking  the  currency  at  this  in- 
creased valuation.  For  instance,  if  the  charges  were  equal  to 
20%  of  the  first  cost  of  the  goods,  the  shilling  would  be 
estimated  at  an  advance  of  20%  on  22.2c, — the  par  value  of 
a  shilling, — or  at  the  valuation  of  26.6c.  Then,  300  yards 
extra  ticking,  @  2  shillings  per  yard,  would  be  marked  as 
costing  53-lc.  per  yard. 

A  franc,  in  an  invoice  on  which  the  charges  are  equal  to 

66%  of  the  invoice,  would  be  reckoned  at  66%  advance  on 

he  exchange  value  of  a  franc.    Or,  the  total  cost  of  the  invoice 

in  United  States  currency  may  be  divided  by  the  number  of 

shillings  or  francs  in  the  total  purchase  price  of  the  goods. 

In  the  invoice  on  the  next  page,  the  cost  is  calculated  in 
this  manner,  no  account  being  taken  of  the  particular  dis- 
counts or  charges,  although  for- strict  accuracy  this  should  be 
done.  The  entire  cost  of  each  item  is  reckoned  at  42£c.  per 
franc.  Thus,  4  gross  combs,  @  36  fr.  per  gross,  cost  36  X 
±2£  =  $1 5.24  per  gross. 


1G8 


INVOICE   FROM    PARIS. 


Paris,  October  16, 1865. 
Invoice  of  One  Package  Merchandise  purchased  by  J.  Glaenzer 
&  Vessepuy,  Jr.,  of  Paris ,  for  account  and  risk  of  Messrs. 
E.  Clinton  &  Co.,  of  Philadelphia,  and  shipped  at  Havre  by 
Sherbette,  Kane  &  Co.  on  board  the  Steamer  JBosphorus, 
bound  for  New  York,  and  consigned  to  themselves. 


E.  C.  &  Co. 

#134 

m                                 1  CASE. 

#                                                                    50 
6.    13  kilo.  Beau  Blanc  Bristles,  @  fr.ll. 

149 

50 

50 
7.    12    "        "         "           ■           "      12. 

150 

00 

3  per  cent,  discount 
3233.    4  gro.  Buffalo  Tuck  Combs,  @  fr.36  net    . 

299 

8 

95 

290 

55 

144 

3234.    3   "           "          "          "           "    42    "     . 

126 

3235.    2    "           u                     "           "    48    «     . 

96 

3331.  36  doz.  Hair  Brushes,                 "      6   "     . 

216 

582 

00 

2899.    5  gro.  Tooth  Brushes,  4R,@  fr.51     . 

255 

2900.    5    "         "           "         5R,  @fr.63     . 

4  per  cent,  discount    . 
2911.    4  gro.  Tooth  Brushes,  @  fr.  21  . 

315 

570 
22 

so 

547 

•JO 

84 

2913.    3    "        "             "           "     33  . 

99 

"  bis   3    "                       "           "     33  . 

99 

2919.    3    "        "             «           "     45  . 

135 

■  bis  I  «       *             "           "           .... 

45 

2  per  cent,  discount    . 

462 
9 

•20 

452 
1872 

so 

55 

Commission  3  per  cent,  an  fr.   290.55  =    8.70 
5      ■             ■      1582.      =79.10 

87 

SO 

„    ,  .      20.   „          15.   _     13.40   _     .         5.25 
Packing         Boxes         Visa            Postage 

53 

m 

Freiglit  from  Paris  to  Havre 

\u 

so 

15  days'  interest,  @  6  per  cent. 

2024 
5 

2029 

N 

05 

K5 

INVOICE    FROM    PARIS. 


169 


Charges  and  Duties  paid  in  New  York  for  account  of  invoice  cow 
signed  to  E.  Clinton  &  Co.,  Nov.  15165. 


25  kilos.  =  lbs.  55,  @  15  $  per  lb., 
Francs,     290.55  =  $54.00 

366.     —    68.00  @  35%, 
1216.     =  226.00  "  40%, 

1872.55 


Entry  Bond, 

Oath,  Transfer  Order,  &c, 

Postage, 

Cartage, 

Bond  for  Triplicate  Invoice, 

Premium  on  Gold,  @  47f  %, 

Contingent  Exp.  50/*,  Com.  3.50 


Insurance,  fr. 2024. 80,  ©  40/  pr.  fr.  = 

$810,  @  2}%, 
Freight  from  Havre  to  New  York,  per 

"Scotland,"  £1  9*.  llrf.  @  145 J, 


Freight  and  Drayage  from  New  York  to 
Philadelphia, 

Francs  2029.86,  @  5.20, 
Gold  Premium  @  47f  %, 

1872.55  fr.  cost  $792.93. 
Cost  of  1  franc,  42^^. 


Note.— 25  kilogrammes  B.  B.  Bristles  pay  a  spe- 
cific duty. 

For  entire  accuracy,  omit  duties  and  particular 
charges  until  the  average,  without  them,  is  found. 
Then  add  the  charges  and  duties  per  franc  on  any 
lot  to  the  average  already  found  for  the  value  per 
franc  on  that  particular  lot. 

Tho  duties  per  franc  may  be  found  by  dividing 
the  amount  of  duties  by  the  number  of  francs 
which  the  lot  cost. 


15 


122 


215 


390 
184 


00 


80 


217 


64 


575  29 


792  93 


170 


ADVANCED    COST    OF    INVOICES. 


IMPORTERS'  ADVANCE   TABLE, 

Showing  tlie  value  of  Sterling  Money  from  1  penny  to  <£5,  si  par, 
and  at  an  advance  from  1\  to  50  per  cent. 


£  4 

ADVANCE  PER  CENT. 

P 

Par. 

n 

10 

12* 

15 

20 

25 

30 

331 

40 

50 

s.  d. 

$cts. 

Sets. 

$cts. 

Sets. 

Sets. 

$cts. 

Sets. 

$  cts. 

Sets. 

$  cts. 

$Ct8. 

Id. 

.0185 

.0199 

.0204 

.0208 

.021 

.0222 

.02  j  1 

.0241 

.0261 

.0259 

.O278 

6 

.11 

.12 

.13 

.13 

.13 

.13 

.14 

.14 

.15 

.15* 

.16| 

7 

I? 

.14 

.14 

.15 

.15 

.16 

'.16 

.17 

.17 

.18* 

.191 

8 

I4l 

.16 

.16 

.17 

.17 

.18 

.19 

.19 

.20 

.20$ 

.22* 

0 

1$ 

.18 

.18 

.19 

.19 

.20 

.21 

.22 

.22 

.234. 

.25 

10 

lg| 

.20 

.20 

.21 

.21 

.22 

.23 

.24 

.25 

.26 

.27* 

11 

to* 

.22 

.22 

.23 

.23 

.24 

.25 

.27 

.27 

.28* 

.30* 

ls.O 

22* 

.24 

.24 

.25 

.26 

.27 

.28 

.29 

.30 

.31 

.331 

1    1 

M 

.26 

.26 

.27 

.28 

!'29 

.30 

.31 

.32 

.33* 

.36 

1    2 

26 

.28 

.29 

.29 

.30 

.31 

.32 

.34 

.35 

.36* 

.39 

1   3 

vft 

.30 

.31 

.31 

.32 

.33 

.35 

.36 

.37 

.39 

•41* 

1  U 

-■/ 1 

.32 

.33 

.33 

.34 

.36 

.37 

.39 

.40 

.41* 

.44* 

1   5 

Ji* 

.34 

.35 

.35 

.36 

.38 

.39 

.41 

.42 

.44 

.47* 

1   6 

ni 

.36 

.37 

.38 

.38 

.40 

.42 

.43 

.44 

.46* 

.50 

1    7 

:d 

.38 

.39 

.40 

.40 

.42 

.44 

.46 

.47 

.49* 

.52* 

I   8 

Yl 

.40 

.41 

.42 

.43 

.44 

.46 

.48 

.49 

.51* 

.55* 

1   9 

to 

.42 

.43 

.44 

.45 

.47 

.49 

.51 

.52 

.54* 

.58* 

110 

.40* 

.44 

.45 

.46 

.47 

.49 

.51 

.53 

.:.t 

.57 

.61 

1 11 

.42* 

.46 

.47 

.48 

.49 

.51 

.53 

.55 

.57 

.59 1 

.64 

2   0 

44* 

.48 

.49 

.50 

.51 

.53 

.56 

.58 

.59 

ml 

.6(3* 

8 

.66* 

.72 

.73 

.75 

.77 

.80 

.83 

.87 

.89 

.93} 

1.00 

4 

.89 

.96 

.98 

1.00 

1.02 

1.07 

1.11 

1.16 

1.19 

1.244 

1 .33* 
1.66| 

5 

1. n 

1.19 

1.22 

1.25 

1.28 

1.33 

1.39 

1.44 

1.4S 

1.50 

6 

!JJ* 

1.43 

1.47 

1.50 

1.53 

1.60 

1.66 

1.73 

1.7S 

l.Sli? 

2.00 

7 

I.J5* 

1.67 

1.71 

1.75 

1.79 

1.S7 

1.94 

2.02 

2.07 

2.17* 

2.334 

2.66* 

8 

i-77* 

1.91 

1 .96 

2.00 

2.04 

2.13 

2.22 

2.31 

2.37 

2.49 

.9 

i.oo 

2.15 

2.20 

2.25 

2.30 

2.40 

2.68 

2.60 

2.67 

2.80 

3.00 

10 

2.22* 

2.39 

2.44 

2.50 

2.56 

2.67 

2.78 

2.89 

2.96 

3.11 

3.38* 

£1 

444* 

4.78 

4.89 

5.00 

5.11 

5.33 

5.56 

5.78 

5.93 

6.22* 

6.66* 

f? 

8.89 

9.56 

9.78 

10.00 

10.22 

1(167 

11.11 

11.56 

11.85 

12.44* 

13.334 

3 

iMJi 

14.33 

14.67 

15.00 

15.33 

16.00 

16.66 

17.33 

17.78 

18.66 

20.00 

k 

1 7-77'? 

19.11 

19.56 

20.00 

20.44 

21.33 

22.22 

23.11 

23.70 

24.89 

26.66| 

* 

22.22* 

23.89 

24.44 

25.00 

25.56 

26.67 

27.78 

28.89 

28.63 

31.11 

33.334 

Explanation. — Find  the  value  of  an  article  invoiced  at  2  shillings, 
when  the  charges  on  the  invoice  are  38$  per  cent,  on  the  cost  of  the 
goods:—  Look  under  38£,  and  opposite  2  shillings,  and  we  have  59. 
— the  advance  cost  of  the  article.  When  the  invoice  price  is  not  in 
the  table,  take  the  sum  of  such  numbers  as  will  equal  the  required 
cost.  When  the  rate  of  advance  is  not  given,  add  the  required  rate 
to  the  value  in  the  par  column. 


QUICK    SALES    AND    SMALL    PROFITS. 


171 


If  every  3  mos.  at  Sf0 ,  $4600.96 


4    <<       . 

3172.17 

6    " 

2158.93 

7h  "       ' 

1850.93 

0    " 

1586.87 

2    "       ' 

1469.33 

2*vrs.    ' 

1166.40 

308.  The  length  of  credit  has  much  to  do  with  the  accu 
mulation  of  profits.  The  difference  between  long  credits  and 
short  credits  is  shown  in  their  effects  in  the  following  ex- 
ample :— 

If  a  young  man  commences  business  with  a  capital  of  $1000,  and 
is  able  to  turn  it  over  every  three  months  at  10^  profit,  in  five 
years  it  will 

Amount  to  $6727.50 

If  every  4  mos.  at  10%,  4177.25 

6    "  "  2593.74 

1\  "  "  2143.59 

10    "  "  1771.56 

12    "  M  1610.51 

2J  yrs.  "  1210.00 

309.  One  of  the  practical  questions  to  be  determined  when  re- 
ducing prices,  is,  Can  enough  more  goods  be  sold  at  the  reduced 
price  to  compensate  for  the  reduced  profits  ? 

QUICK   SALES   AND   SMALL   PROFITS. 

A  man  commenced  business  on  a  borrowed  capital  of 
$4000,  and  paid  interest  monthly  at  the  rate  of  6%  per  an- 
num,— that  is,  $20  per  month.  His  expenses  were  $180  per 
month  additional.  He  invariably  paid  cash,  thereby  saving 
5%  discount  on  the  invoice  price.  He  sold  his  entire  stock 
every  month  at  an  advance  of  5%  on  the  invoice  price,  and 
immediately  reinvested  the  proceeds.  What  profit  did  he 
make  by  the  end  of  the  year?  Ans.  $4879.18. 


ECONOMY   THE    SOURCE   OF   WEALTH. 

At  compound  interest,  in  ten  years, 

2f  cts.  a  day,  or  $10  a  year,  will  become  $130. 
11  "  40  "  "  520. 

1300. 
2305. 
4814. 


27* 

ti 

100 

50 

u 

182  50 

100 

a 

365 

172  MARKING   GOODS. 


MARKING  GOODS. 


310.  It  is  customary  in  many  mercantile  houses  to  use  a 
private  mark,  which  is  placed  on  the  goods  to  denote  their 
cost  and  selling  price.  A  word  or  phrase  containing  ten 
different  letters  is  taken,  the  letters  of  which  are  written  in- 
stead of  figures.  For  instance,  the  word  "Cumberland"  is 
selected ;  then  the  letters  represent  the  figures  as  follows ; — 


c 

u 

m 

b 

e 

r 

1 

a 

n 

d 

1 

2 

3 

4 

5 

6 

7 

8 

9 

0 

If  it  is  required  to  mark  1.50,  it  is  done  thus,  ced;  75 
would  be  le;  37,  ml,  &c. 

Blacksmith,  Importance,  Republican,  Perth  Amboy,  Fair 
Spoken,  Now  be  sharp,  Noisy  Table,  and  Cash  Profit,  are 
among  the  words  and  phrases  which  can  be  used  in  this 
manner. 

311.  It  sometimes  happens  that  the  selling  price  contains 
three  figures,  while  the  buying  price  contains  but  two.  To 
prevent  this  difference  from  being  noticed,  the  letter  denoting 
the  cipher  is  prefixed  to  the  buying  price.  For  instance,  if 
the  buying  price  was  87,  it  would  be  marked  dal;  and  the 
selling  price,  1.25,  cue;  thus  giving  each  price  three  letters. 

312.  An  extra  letter,  called  a  "  Repeater,"  is  used  to  pre- 
vent the  repetition  of  a  figure.  Instead  of  writing  cdd  for 
100,  which  would  show  at  once  that  the  two  right-hand  figures 
were  alike,  and  thus  aid  in  giving  a  clue  to  the  key-word, 
some  additional  letter  would  be  selected  for  a  repeater, — ?/, 
for  instance, — and  then  the  price  would  be  written  cdy ;  225 
would  be  written  uye. 

313.  Instead  of  letters,  arbitrary  characters  are  frequently 
used,  something  like  the  following : — 

J2T:^DXun 

1234567890 


PRODUCTION    OF    GOLD   AND    SILVER. 


ITS 


Fractions  may  be  designated  by  additional  letters  or  charac- 
ters. Thus, /may  represent  £,  to  f,  &c;  or  i  maybe  written 
O,  i  +,  &c. 

314:.  The  marks  on  packages,  barrels,  &c.  are  often  some 
arbitrary  mark,  or  letter  selected  at  random,  or  the  initials  of 
the  purchaser  placed  there  for  the  purpose  of  showing  that 
the  goods  belong  to  some  particular  lot,  and  are  put  on  for 
the  sake  of  distinction  merely. 

What  is  the  profit,  and  what  the  selling  price,  of  the  fol- 


lowing  ? — 

Gain. 

Selling  Price. 

First  cost, 
<< 
<« 

M 

$1.10, 

.50, 

1.00, 

4.80, 

Freight,  10%, 
20%, 

20%, 
10%, 
30%, 

15%, 

«( 
14 

2.50, 
1.75, 

"       io%, 

20%, 

5%, 

«( 

3.00, 

Charges,  7£%, 

25%, 

Mark   the 

selling 

price    of  the 

above, 

using   the   wc 

"Cumberland"  instead  of  figures,  and/  for  a  repeater. 


Annual  Production  of  the  Gold  and  Silver  Mines  of  the  World 
before  1865.     (  Value  in  Francs.) 


Silver. 

Gold. 

92,888,000 

103,444,000 

1,333,000 

28,889,000 

13,333,000 

227,333.000 
14,500,000 
17,222.000 

4,133,000 

2,067.000 

10,333,000 
4,133,000 

Chili , 

18,889.000 
5,556,000 

Other  American  Countries 

3,617,000 

264,332,000 
47,784,000 
111,111,000 

283,338,000 
418,456,000 
275,555,000 

Africa,  India,  Chita,  Japan,  &c 

423,227,000 

977,349,000 

What  is  the  value  of  the  above  in  United  States  currency,  esti- 
mating the  franc  at  5.18  per  dollar,  and  specie  at  a  premium  of 
30%? 

15* 


174         PARTNERSHIP  SETTLEMENTS. 


PARTNERSHIP  SETTLEMENTS. 

315.  Partnership  is  the  association  of  two  or  more  per- 
sons for  the  transaction  of  business.  Such  an  association  is 
called  a  firm,  house,  or  company,  and  the  members  of  the 
association  are  called  partners.  (See  Partnership,  page 
318,  and  Articles  of  Agreement,  page  320.) 

316.  The  means  contributed  by  the  members  of  the  firm 
are  called  its  Capital.  Money,  property,  notes  and  debts 
due  from  others,  are  called  Assets,  or  Resources.  Debts 
which  the  firm  owe  are  called  Liabilities.  Amounts  with- 
drawn affect  the  original  investment.  They  are  sometimes 
counted  as  resources;  but  what  has  been  withdrawn  can 
hardly  be  considered  a  resource,  and  settlements  based  upon 
such  estimates  are  frequently  erroneous.  When  it  is  desired 
to  retain  the  net  capital  at  starting  unchanged,  the  amounts 
withdrawn  may  be  treated  as  resources ;  but  they  must  be 
taken  from  each  partner's  capital  to  obtain  his  true  share. 
Obligations  assumed  by  the  firm  for  a  partner  are  to  be 
treated  in  the  same  manner  as  sums  withdrawn  by  him  j  and 
additional  sums  invested,  or  to  which  he  is  entitled,  increase 
his  original  investment. 

317.  If  the  Resources  are  greater  than  the  Liabilities, 
the  difference  is  termed  the  Net  Capital;  if  the  Liabilities 
are  greater  than  the  Resources,  the  difference  is  termed  the 
Net  Insolvency.  The  difference  between  the  total  gains  and 
the  total  losses  is  called  Net  Gains,  or  Net  Losses. 

318.  When  the  net  capital  at  closing  exceeds  the  net 
capital  at  commencing,  the  difference  is  the  net  gain.  When 
the  net  capital  at  closing  is  less  than  at  commencing,  the 
difference  is  the  net  loss.  When  there  is  an  insolvency  at 
closing,  the  sum  of  the  net  capital  at  starting,  and  the  net 
insolvency,  is  the  net  loss. 

When    here  is  a  not  insolvency  at  commencing  business. 


PARTNERSHIP    SETTLEMENTS.  175 

and  a  net  capital  at  closing,  the  sum  of  both  is  ;he  net  gain ; 
when  the  net  insolvency  at  closing  is  greater  than  at  com- 
mencing, the  increase  is  the  net  loss. 

319.  The  gains  and  losses  of  a  firm  are  divided  among  the 
partners  in  accordance  with  the  original  agreement  or  con- 
tract between  them.  The  division  is  seldom  made  in  exact 
proportion  to  the  amount  invested :  it  is  more  customary  to 
credit  each  partner  with  interest  on  his  capital  invested,  less 
interest  on  sums  withdrawn  during  the  year. 

Sometimes  the  skill  of  one  partner  is  considered  equivalent 
to  another's  capital ;  in  some  cases  certain  privileges  are 
grauted  to  him  who  invests  most;  and  sometimes  a  stated 
salary  is  allowed  each  partner  according  to  his  ability,  and  is 
taken  from  the  gains  of  the  firm  before  they  are  divided. 

EXAMPLES. 

1.  A  merchant  commenced  business  with  $5000  in  cash, 
$3000  worth  of  goods  in  store,  and  owing  $1500.  At  the  end 
of  the  year  he  had  $2500  in  cash,  $4200  in  goods,  $3300  in 
notes,  and  he  owed  to  various  persons  $1350.  How  much 
did  he  gain  ? 

$5,000  Cash.  $2,500  Cash. 

3,000  Mdse.  4,200  Mdse. 

o  nnr\    a         »        i  •  3,300  Notes. 

o,000  Assets  at  commencing.  — I 

1,500  Liabilities.  10,000  Assets  at  closing. 

*77Z  XT  ,                                .                  1,350  Liabilities  at  closing. 
$6,000  Net  cap.  at  commencing.  — : ° 

$8,650  Net  capital  at  closing. 
$8G50  —  $6500  =  $2150,  Net  gain. 

2.  A  firm  on  January  1st,  1865,  had  a  capital  consisting 
of  $3200  in  cash,  $18,500  in  merchandise,  and  $4600  in 
notes  and  debts  due  them  ;  their  debfs  amounted  to  $2100. 
At  the  end  of  the  year  their  assets  were  $12,000  in  mer- 
ohandise,  $5000  in  cash,  and  $14,000  in  notes  and  debts  due 
them,  20%  of  which  were  considered  worthless.  Their  lia- 
bilities were  notes  held  by  others  against  them,  amounting 
to  $18,000.     How  much  did  they  gain  or  lose  ? 


176  PARTNERSHIP    SETTLEMENTS. 

320.  To  find  each  partner's  share  of  the  gains  or  losses, 
when  the  shares  are  in  proportion  to  the  investments. 

Rule. — Place  the  amount  invested  by  each  -partner  as  a 
numerator,  and  the  whole  capital  of  the  firm  as  a  denomi- 
nator :  the  several  fractions  will  express  each  partner 's  share. 
Then,  Multiply  the  gain  or  loss  by  the  fraction  expressing 
each  partner's  share,  and  the  product  will  be  his  share  of  the 
gain  or  loss.     Or, 

By  Distributive  Proportion  (see  page  48) 

The  whole  capital)   ,    ( Each  partner's )    ..    /Whole  gain \  .    f  Each  partner's  gain 
of  the  firm        J   "  \        capital        J    "  '    \      or  loss     j   "    (  or  loss. 

Or,  By  Percentage  : 

Multiply  each  partner's  capital  by  the  percentage  which  the  gains  or 

losses  may  be  of  the  capital  of  the  firm. 

EXAMPLES. 

1.  A.,  B.,  and  C.  formed  a  partnership.  A.  invested  $3000, 
B.  $2500,  and  C.  $1500.  Their  profits  were  $2800,  to  be 
divided  in  proportion  to  their  capital.  What  was  each  part- 
ner's share  ? 

FIRST  METHOD. 
$3000  4-  $2500  +  $1500  =  $7000,  Firm's  capital. 
ffi°o=   f,  A.'s  share.     2800  X  f  =$1200,  A.'s  gain. 
?o-n  =  T5?>B-'8     "  2800XT5?  =  $100°,  B.'s     « 

^  =  T3i'C's     «  2800XT3?=  $600,  C.'s     » 

$2800,  Firm's  gain. 


$7000 
$7000 
$7000 


SECOND  METHOD, 

$3000 
$2500 
$1500 


:  2800  :  $1200,  A.'s  gain. 
:  2800  :  $1000,  B.'s  " 
:  2800  :  $600,  C.'s  " 


$2800,  Proof. 


•  THIRD  METHOD. 

$2800  =  40%  of  $7000. 
$3000X40%  =$1200,  A.'s  gain. 
$2500 X 40%  =$1000,  B.'s     " 
$1300X40%=  $600,  C.'s     " 
$2800 


PARTNERSHIP    SETTLEMENTS.  177 

2.  A.  and  B.  speculated  in  grain.  A.  invested  1200 
bushels  of  wheat,  at  $1.50  per  bushel;  B.  invested  2000 
bushels  corn,  at  80^  per  bushel.  The  gains  and  losses  were 
shared  in  proportion  to  value  of  investment.  Their  net  gains 
were  $510.     What  was  the  share  of  each  ? 

OPERATION. 

1200  bus.  at  $1.50  =  $1800.     $£{$  =  tV  of  510  =  270,  A.'s  gain. 
2000  bus.  at      .80  =  $1600.     Jfflf  =  T87  of  510  =  240,  B.'s  gain. 

3.  Four  men  purchased  a  piece  of  land  for  $3G,000.  The 
first  contributed  $20,000,  the  second  $10,000,  the  third 
$4000,  and  the  fourth  $2000.  They  sold  the  land  at  an  ad- 
vance of  50%  on  the  purchase  price.  How  much  was  each 
man's  share  of  the  gain  ? 

4.  A.  and  B.  are  partners.  A.  invested  $15,000,  and  B. 
$6000.  A.'s  share  of  the  gain  or  loss  is  ~,  B.'s  i.  At  the 
end  of  the  year  their  resources  are  $35,000  in  goods  and 
cash,  and  their  liabilities  consist  of  notes  outstanding  to  the 
amount  of  $15,500.  How  much  is  the  firm's  net  capital,  and 
what  is  each  partner's  share  of  the  gain  or  loss  ? 

A.'s  investment,  $15,000      Resources,  $35,000 

B.'s  investment,  6,000      Liabilities,  15,500 

Firm's  net  cap.  at  commencing,  $21,000  Firm's  net  cap.,    $19,500 

Deduct  net  capital  at  closing,  $19,500      A.'s  f  loss,  $1,000 

Firm's  net  loss,  $1,500  3  

Firm's  net  loss,      $1,500 


321.  To  find  each  partner's  interest  at  closing. 
Rule. — I.  Find  the  firm's  net  capital  or  net  insolvency  at 
commencing  and  at  closing. 

II.  Find  the  firm's  net  gains  or  net  losses,  and  each  part- 
ner's share.     Then, 

III.  To  each  partner  s  original  investment  add  any  addi- 
tional investments  or  sums  to  which  he  may  be  entitled,  and 
his  share  of  the  net  gains,  if  any ;  also,  deduct  the  amounts 
withdrawn  by  him,  and  obligations  assumed  by  the  firm  for 

him.  and,  his  share  of  the  net  lossesi  if  any. 
M 


178  PARTNERSHIP    SETTLEMENTS. 

If  the  original  agreement  entitle  him  to  any  other  sum,  or 
make  him  responsible  to  the  firm  for  any  sum,  add  or  subtract, 
as  the  case  may  be. 

EXAMPLES. 

1.  A.  and  B.,  having  been  in  business  1  year,  dissolve  partner- 
ship. B.  retires,  leaving  A.  to  continue  the  business  and  liqui- 
date the  debts  of  the  firm.  A.  invested  $12,000,  B:  $10,000. 
Each  is  to  receive  interest  on  his  investment,  and  share  the 
gains  and  losses  equally.  How  much  did  each  gain  ?  what  is 
A.'s  capital  at  closing,  and  how  much  should  he  pay  B.  on 
retiring,  the  resources  and  liabilities  being  as  follows  ? 

Resources.  Liabilities. 

Cash  on  hand,  $5,000    Personal  debts  firm  owe  per  Ledger,  $8,170 

Personal  debts  due  firm,  per  Bills  Payable,  4,200 

Ledger,  $12,000  Interest  on  notes  and  drafts,  130 

Less  25  per  cent,  for  bad  debts,  3,000   9,000  Total  Liabilities,  $12^00 

Mdse.,  as  per  inventory,  16,530 

Rills  Receivable,  3,500 

U.  S.  5-20  bonds,  4,000 

Accrued  interest  on  5-20  bonds,  120 

Real  Estate  (store  and  lot),  6,500 

Btore  fixtures,  350 

Total  Resources,  $45,000 

OPERATION. 
Total  resources,  .  $45,000 

«     liabilities,  12,500 


Firm's  net  capital  at  closing,  $32,500 

Interest  on  A.'s  investment,  $12,000  for  1  year,       =  $720 
B.'s  "  10,000  "  =    600 

Firm's  net  capital  at  closing,  $32,500 

A.'s  investment,  $12,000 

Interest  for  1  year,  720       12,720 

B.'s  investment,  $10,000 

Interest  for  1  year,  600       10,600         23,320 

Firm's  net  gains  in  business,  $9,180 

A.'s  investment,  $12,000         B.'s  investment,  $10,000 

Interest  for  1  year,  720  Interest  for  1  year,  600 

His  \  net  gains,  4,590  His  \  net  gains,  4,590 

A.'s  net  capital,       $17,310  B.'s  net  capital,       $15,190 

A.'s  net  capital,  $17,310 

B.'s  "  15,190 

Firm's  net  capital,  as  before,     $32,500 


PARTNERSHIP   SErTLEMENTS.  179 

2.  D.  and  E.  are  partners ;  each  invested  $3000,  and  agreed 
to  share  the  gains  and  losses  equally.  During  the  year, 
D.  drew  out  $600,  and  E.  $500.  What  were  their  gains  at 
the  end  of  the  year,  their  resources  and  liabilities  being  as 
follows  ? 

Resources. 


Cash  on  hand, 

Mdse.,  as  per  inventory, 

Bills  Receivable, 

Debts  due  firm,  as  per  Ledger, 

$3,500 
3,600 
1,200 
2,500 

Total  resources, 

$10,800 

Liabilities. 

Debts  firm  owe,  as  per  Ledger, 
Bills  Payable, 

Total  liabilities, 

$1,500 
800 

2,300 

Firm's  net  capital  at  closing, 

$8,500 

D.  invested 

Less  amount  withdrawn, 

$3,000 
600 

D.'s  credit  balance, 

$2,400 

E.  invested 

Less  amount  withdrawn, 

3,000 
500 

E.'s  credit  balance, 

Balance  of  investments, 

$2,500 

4,900 

Firm's  net  gains, 

$3,600 

PROOF. 

D.  invested                        $3,000           E.  invested 
Withdrew                                  GOO            Withdrew 

$3,000 
500 

2,400 
£  net  gains,                           1,800            h  I 

net  gains, 

2,500 
1,800 

D.'s  net  cap.  at  closing,   $4,200           E. 

's  net  cap.  at  closing,  $4,300 

D.'s  net  capital, 

E.'s 

$4,200 
4,300 

Firm's  net  capital,  as  above,       $8,500 

3.  A..  B.,  and  C.  form  a  partnership;  A.  invests  $15,000, 
B.  $12,000,  and  C.  nothing.  They  share  the  gains  and  losses 
as  follows, — viz. :  A.  J,  B.  £,  and  C.  i.  A.  draws  out  during 
the  year  $800,  B.  $900,  and  C.  $400.    What  is  each  partner's 


180  PARTNERSHIP   SETTLEMENTS. 

capital,  and  what  are  the  gains  at  the  end  of  the  year,  when 
their  resources  amount  to  $40,000,  and  their  liabilities  to 
$44,000  ? 

OPERATION. 

Liabilities,  $44,000     A.'s  investment,  $15,000 

Less  resources,  40,000    Less  am't  withdrawn,  800  $14,200 

Firm's  net  insolvency,  $4,000    B.'s  investment,     12,000 

Less  am't  withdrawn,  900     11,100 

25,300 

A.'s  i  loss,  $14,450.00    Less  **'*  withdrawn  *7  C->     40° 

B.'s  |   "  9,633.33     Firm's  net  investment,         24,900 

C.'s  J   "  4,816.67     Add  firm's  insolvency,  4,000 

Total  losses,     $28,900.00  Firm's  net  loss,         $28,900 

A.'s  investment,  $15,000     A.'s  \  loss,  $14,450 

Less  amount  withdrawn,        800     Net  investment,  14,200 

$14,200         A.'s  net  insolvency,  $250 

B.'s  investment,  $12,000.00     C.'s  \  loss,  $4,816.67 

Less  am't  withdrawn,        900.00     Add  am't  withdrawn,  400.00 

11,100.00         C.'s  net  insolvency,     $5,216.67 
Less  his  £  loss,  9,633.33 

B.'s  net  capital,     $1,466.67 

A.'s  insolvency,  $250.00 

C.'s         "  5,216.67 

5,466.67 
Deduct  B.'s  net  capital,  1,466.67 

Firm's  net  insolvency,      $4,000.00 

4.  In  which  a  salary  is  allowed  each  partner.     No  interest 
account  kept. 

A.,  B.,  and  C.  entered  into  partnership  January  1st,  1865. 
A.  and  B.  each  invested  $7000,  C.  invested  $14,000.  A.'s 
share  of  the  gains  or  losses  was  £,  B.'s  i,  and  C.'s  h  A.  was 
to  receive  a  salary  of  $1000  per  year,  B.  $1500,  and  C.  $500, 
for  services.  A.  drew  out  $650,  B.  $450,  and  C.  $900. 
What  was  each  partner's  interest  in  the  firm  January  1st. 
1866,  when  their  resources  were  $54,500,  and  their  liabilities 
$13,500  1 


PARTNERSHIP    SETTLEMENTS. 


181 


U-f-EilViV. 

Resources, 
Liabilities, 

L±V1>. 

$54,500 
13,500 

Firm' 

s  net  capital, 

$41,000 

A.'s  investment, 
Add  salary, 

$7,0*00 
1000 

Less  amount  withdrawn, 

8,000 
650 

A.'s  credit  balance, 

7,350 

B.'s  investment, 
Add  salary, 

$7,000 
1,500 

Less  amount  withdrawn, 

8,500 
450 

B.'s  credit  balance, 

8,050 

C.'s  investment, 
Add  salary, 

$14,000 
500 

Less  amount  withdrawn, 

14,500 
900 

C.'s  credit  balance, 

13,600 

29,000 

Firm's  net 

gains, 

$12,000 

A.'s  credit  balance,    $7,350     B.'s  credit  balance,  $8,050 
"    igain,                   3,000        "    ±  gain,                  3,000 

Net  capital,          $10,350         Net  capital,         $11,050 

C.'s  credit  balance,  $13,000 
"   i  gain,                     6,000 

Net  capital,           $19,600 

Proof. — A.'s  net  capita' 
B.'s 
C.*s 

I, 

$10,350 
11.050 
19,600 

Firm's  net  capital,  as  above,     $41,000 


5.  In  which  amounts  withdrawn  are  averaged,  and  interest  is 
charged  and  allowed. 

A.  and  B.  entered  into  partnership  January  1st,  1864. 
A.  invested  $12,000,  and  B.  $14,500,  the  gains  and  losses  to 
be  shared  equally ;  each  partner  to  be  allowed  6  per  cent,  on 
his  investment,  and  to  be  charged  at  the  same  rate  on  sums 
drawn  out.  A.  drew  as  follows  : — March  1st,  $300  ;  July  9th, 
$250 ;  September  10th,  $200  ;  December  16th,  $150.  B.  drew, 
April  7th,  $100;  August  4th,  $400;  November  23d,  $250. 
What  was  each  partner's  interest  January  1st,  1865,  their 
resources  and  liabilities  being  as  follows  ? 

16 


182 


PARTNERSHIP    SETTLEMENTS. 


Resources. 

Cash,  $3,600 

Personal  debts  due  firm,     16,000 
Bills  Receivable,  1,400 

Mdse.,  as  per  inventory,    26,000 
Penna.  Central  R.R.  Stock  6,000 


Total  resources, 


$53,000 


Liabilities. 

Personal  debts  firm  owe,  $11,500 
Bills  Payable,  500 

Total  liabilities, 

Firm's  net  capital. 


12,000 

41,000 

$53,000 


Average  date  of  amounts  withdrawn  by  A.,     July  6th. 
«  "  "  B.,     Aug.  26th. 


A. 's  investment,  $12,000 

I  ess  amount  withdrawn,        900     $11,100 
Interest  on  investment, 
$12,000,  for  1  year,  720 

iess  interest  on  $900 
withdrawn,  from  ave- 
rage date,  July  6th  to 
Jan.  1st  (178  days),  26.70       693.30 


A.'s  credit  balance, 


$11,793.30 


B.'s  investment,       $14,500.00 

Less  am't  withdrawn,    750.00    $13,750.00 

Int.  on  investment, 
$14,500,  for  1  year,      870.00 

Less  int.  on  $750  with- 
drawn, from  average 
date,  Aug.  26  to  Jan. 
1  (127  days),  15.87  854.13 

B.'s  credit  balance,  $14,604.13 


Firm's  net  capital,  $41,000.00 

A.'s  credit  balance,  $11,793.30 

B.'s  "  $14,604.13     26,397.43 

$14,602.57 


Firm's  net  gains, 
A.'s  investment,  less 


amount  withdrawn,  $11,100.00 
Credit  balance  of  int.,  693. 30 
His  \  gains,  7,301.29 

A.'s  net  capital,       $19,094.59 


B.'s  investment,  less 

amount  withdrawn,  $13,750.00 
Credit  balance  of  int.,  854.13 
His  }  gains,  7,301.28 

B.'s  net  capital,         $21,905.41 


Firm's  net  capital,  as  above,  $41,000. 

6.  A.,  B.,  and  C.  commenced  business  with  a  capital  of 
$.6000  each.  The  gains  and  losses  were  to  be  shared  equally, 
and  each  partner  was  to  receive  interest  on  his  capital,  and 
to  pay  interest  on  all  sums  withdrawn.  At  the  close  of  the 
year  they  had — Cash  on  hand,  $4250  ;  Merchandise,  $16,500  j 
Bills  Receivable,  $1000  j  Personal  debts  due  them,  $4120.67. 
The  firm  owes— Bills  Payable,  $500  ;  Personal  debts,  $630.35. 

During  the  year,  A.  drew  out  $1007.57,  the  interest  on 
which  to  the  end  of  the  year  was  $20.15  ;  B.  drew  $2049.61, 
on  which  the  interest  was  $20.50 ;  C.  drew  $3213.92,  the  in-, 
terest  on  which  was  $28.12.  How  much  did  they  gain  or  lose, 
and  what  was  each  partner's  capital  at  the  end  of  the  year  ? 

Note. — When  books  are  kept  by  Double  Entry,  the  above  results  can 
be  obtained  with  very  little  trouble. 


PARTNERSHIP    SETTLEMENTS. 


183 


7.  When  the  capital  of  the  firm  or  company  is  kept  separate 
from  the  accounts  of  the  partners,  and  the  amounts  withdrawn 
are  to  be  considered  as  taken  from  the  gains  and  not  from  the 
capital,  the  following  forms  of  statement  are  generally  adopted : — 

Real  Estate,  $45,000 

Machinery  and  fixtures,        7,000 
Cash,  2,500 

Mdse.,  as  per  inventory,       8,500 
U.  S.  5-20  Bonds,  6,000 

Accrued  int.  on  do.,  120 

Bills  Receivable,  12,000 

Central  Pacific  R.R.  Stock,  5,000 
Partners'  withdrawals  and 
interest, — 

James  L.  Hart,  8.400 

Robert  Hunter,  4,880 

Philip  S.  Weston,  3,500 


Liabilities. 

Bills  Payable, 
Debts,  per  Ledger, 
Capital  Stock, 
Net  gains, 

$15,750 
14,250 
50,000 
22,900 

Jas.  L.  Hart's  £  gain,  $11,450 
Less  ain't  withdrawn,     8,400 

Balance,  $3,050 
Robt.  Hunter's  £  gain,  $5,725 

Less  am't  withdrawn,  4,880 

Balance,  $845 

P.  S.  Weston's  i  gain,  $5,725 

Less  am't  withdrawn,  3,500 

Balance, 


$2,225 


$102,900  $102,900 

8.  A.  and  B.  commenced  business  as  partners.  A.  invested 
$20,000,  and  B.  $10,000,  A.  sharing  f  and  B.  £  of  the  gains 
and  losses.  No  interest  account  was  kept.  A.  drew  out  $1700, 
and  B.  $2150.  Their  assets  at  the  close  of  the  year  consisted 
of— Cash,  $4200  ;  Bills  Receivable,  $8800  j  Mdse.,  $26,000 ; 
and  Personal  debts,  $16,000.  10  per  cent,  of  the  personal 
del)ts  are  considered  bad.  Their  liabilities  are — Bills  Pay- 
able, $3250;  Personal  accounts,  $11,250.  If  B.  should  re- 
tire from  the  firm, 


how  much  ou<>ht  he  to  receive  ? 


Assets. 
Cash,  $4,200 

Bills  Receivable,  .     8,800 

Mdse.,  26,000 

Personal  accts.,  less  10%,  14,400 

$53,400 

A.dd  amount  drawn  out,        3,850 


$57,250 


A.'s  Acct. 


B.'s  Acct, 


Dr. 
Drawn  out, 
Balance, 


Drawn  out, 
Balance, 


Liabilities. 
Bills  Payable, 
Personal  accounts, 


Capital  invested, 
Firm's  net  gain, 


$3,250 
11,250 

$14,500 
30,000 

$44,500 
12,750 

$57,250 


$1,700 
26,800 


$28,500 


$2,150 
12,100 


$14,250 


Capital, 
f  net  gain. 


Capital, 
£  net  gain, 


Or. 

$20,000 
8,500 

$28,500 

$10,000 
4,250 

$14,250 


184        DETECTING    ERRORS    IN    TRIAL    BALANCES. 


DETECTING   ERRORS   IN   TRIAL   BALANCES. 

322.  The  Trial  Balance  is  the  best  short  test  of  the 
correctness  of  account-books  that  has  yet  been  devised.  It 
is  not,  however,  entirely  reliable  j  because  its  equilibrium  is 
not  affected  by  posting  into  the  wrong  account,  or  omitting  to 
post  both  a  debit  and  a  credit  of  equal  amounts. 

When  the  Trial  Balance  is  not  in  equilibrium,  to  discover 
where  the  error  exists, — 

1.  Ascertain  the  exact  amount  of  the  error.  Omitting  to 
do  this  has  led  to  prolonged  search  for  what  did  not  really 
exist. 

2.  If  the  error  is  of  large  amount,  examine  whether  the 
amounts  have  been  entered  in  the  Trial  Balance  correctly. 
Many  mistakes  are  made  in  transferring  amounts  from  one 
place  to  another.  For  this  reason,  some  book-keepers  always 
post  with  their  Ledger  on  their  right,  to  prevent  reading 
the  figures  backwards. 

3.  Examine  the  Cash  Balance:  it  can  never  be  on  the 
credit  side,  and  should  agree  with  the  amount  actually  on 
hand.  The  balance  of  Bills  Receivable  should  never  be  on 
the  credit  side,  nor  the  balance  of  Bills  Payable  on  the  debit 
side  of  the  account. 

4.  If  posts  are  made  directly  from*  the  Cash  Book,  see 
whether  the  balance  brought  down  from  the  previous  month 
has  been  deducted  from  the  debit  footing  before  posting  to 
the  debit  of  cash.  The  total  debit  footing,  less  the  balance 
from  the  previous  month,  is  the  proper  amount  to  post. 

5.  Examine  the  books,  to  find  an  amount  corresponding 
with  the  error,  or  with  half  the  error  j  an  amount  posted  to 
the  wrong  side  of  an  account  will  produce  an  error  in  bal- 
ancing equal  to  twice  the  amount. 

6.  Divide  the  error  by  9.  It  is  a  principle  in  figures  that 
the  difference  between  any  number  and  the  same  number 


DETECTING    ERRORS    IN   TRIAL    BALANCES.        185 

transposed  in  whole,  or  in  part,  may  be  d'vided  by  9  without 
a  remainder,  and  the  sum  of  the  figures  in  the  difference 
will  make  9's.  Thus,  the  difference  between  753  and  735  = 
18  -*-  9  =  2,  and  1  -f  8  =  9. 

9753  9753  9753  9753 

7953  9573  9735  3579 

1800  180  18  6174 

Errors  in  transposition  are  among  the  most  difficult  of  de- 
tection. 

7.  See  whether  the  footings  of  the  accounts  and  the  bal- 
ances are  correct. 

If  the  error  is  in  one  figure  only,  it  is  generally  an  error 
in  adding,  carrying,  or  transferring. 

If  the  error  is  in  the  dollar  column  or  cent  columns  only, 
the  columns  on  the  left  need  not  be  re-added. 

8.  If,  after  the  above  examinations,  the  error  remains 
undiscovered,  examine  each  post  separately,  and  check  the 
amounts  both  in  the  book  from  which  postings  are  made  and 
in  the  Ledger,  and  then  examine  the  amounts  to  see  if  any 
remain  unchecked.  If  the  entries  are  made  correctly,  and 
the  amounts  are  in  equilibrium  before  posting,  by  following 
the  above  suggestions  the  error  will  soon  be  detected. 


FRAUDULENT   BALANCES. 

323.  To  ascertain  the  true  weight  with  fraudulent  balances, 
when  the  weights  are  accurate. 

Rule. — Find  what  weights  balance  the  substance  to  be 
weig\cd;  then  transpose  them,  and  find  the  weight  that  will 
produce  an  equilibrium;  then  multiply  together  the  two  weights 
thus  found,  and  extract  the  square  root  of  the  product. 

Example. — If  by  the  first  weighing  the  article  weighs 
8  lbs.,  and  by  the  second  it  weighs  10i  lbs.,  the  product  is  81, 
the  square  root  of  which  is  9,  the  true  weight. 

16* 


186  DIVIDENDS   AND   INVESTMENTS. 


DIVIDENDS   AND   INVESTMENTS. 

324c,  Stocks  is  a  general  term  applied  to  the  bonds  of  the 
Government  or  State,  and  to  the  bonds  arid  shares  of  incor- 
porate companies.  They  are  usually  bought  and  sold,  through 
the  medium  of  brokers,  at  the  Stock  Exchange. 

325.  Bonds  are  obligations  or  deeds  securing  the  payment 
of  a  certain  sum  of  money  on  or  before  a  future  day  ap- 
pointed. 

When  issued  by  governments  or  corporations,  they  are 
made  in  denominations  of  convenient  size,  bearing  interest 
usually  payable  semi-annually.  They  frequently  have  coupons 
or  interest-tickets  attached,  bearing  date,  amount,  signature, 
&c,  which  are  due  at  the  expiration  of  each  successive  half- 
year;  these  are  cut  off  as  they  are  paid,  and  held  as  receipts. 
For  temporary  loans,  Treasury  Notes  have  also  been  issued  by 
the  United  States  Government,  payable  with  interest,  some 
with  and  some  without  coupons.  Exchequer  Bills  have  been 
issued  in  England  in  the  same  manner. 

326.  A  Joint  Stock  Company  is  an  association  of  men 
having  a  capital  that  is  divided  into  shares  of  equal  value, 
which  are  transferable  and  may  be  bought  and  sold  like  any 
other  property. 

327.  Certificates  of  Stock  are  issued  to  each  stock- 
holder, indicating  the  number  of  shares  to  which  he  is  en- 
titled. The  first  or  original  value  of  the  shares  is  called  their 
nominal  or  par  value.  When  they  sell  for  more  than  their 
par  value,  they  are  said  to  be  above  par,  or  at  a,  premium; 
when  for  less,  below  par,  or  at  a  discount. 

328.  An  Instalment  is  a  certain  portion  of  the  capital 
paid  at  a  particular  time. 

329.  An  Assessment  is  an  amount  for  which  the  stock- 
holders are  called  upon  to  make  up  deficiencies  or  losses. 


DIVIDENDS   AND   INVESTMENTS.  187 

330.  The  Gross  Earnings  consist  of  the  entire  receipts 
of  a  company. 

331.  The  Net  Earnings  are  what  remains  after  the  ex- 
penses are  deducted. 

332.  The  Dividend  is  the  sum  divided  among  the  stock- 
holders from  the  gains  of  the  business. 

333.  Sometimes,  in  addition  to  the  cash  dividend,  which  is 
payable  at  a  stated  time,  the  company  declare  a  Scrip  divi- 
dend, for  which  certificates  are  issued  payable  on  the  contin- 
gency that  the  affairs  of  the  company  continue  prosperous 
This  Scrip  bears  interest,  or  not,  as  the  company  may  deter- 
mine.    (See  Form  of  Certificate  of  Scrip.) 

334.  A  Mortgage  is  a  conveyance  of  property  as  a  pledge 
for  the  security  of  a  debt,  and  becomes  void  when  the  debt 
is  paid. 

335.  Gronnd-Rents  is  a  term  applied  to  leases  of  build- 
ing lots,  the  rent  of  which  is  considered  equivalent  to  the  in- 
terest on  the  valuation  of  the  land.  The  payment  is  gene- 
rally secured  by  a  claim  on  the  building  erected  on  the 
land  occupied.  By  a  recent  law  in  Pennsylvania,  no  new 
ground-rent  can  be  made  irredeemable,  but  may  be  extin- 
guished upon  payment  of  a  sum  the  interest  of  which  is  equal 
to  the  rent  annually  paid. 

336.  Building  Lots  are  sometimes  sold  at  so  much  per 
foot.  The  price  is  obtained  by  dividing  the  interest  per 
annum  on  the  valuation  of  the  whole  lot  by  the  number  of 
feet  on  the  front ;  the  quotient  is  the  price  per  foot.  Thus, 
a  lot  valued  at  $3000,  with  a  front  of  20  feet,  is  said  to  be 
worth  $9  per  foot;  the  interest  on  $3000,  which  is  $180  per 
annum,  being  divided  by  20,  the  number  of  feet  on  the  front, 
gives  $9  as  the  price. 

337.  The  value  of  an  investment  depends  upon  its 
security,  its  productiveness,  its  permanency,  its 
facility  of  transfer,  and  the  readiness  with  which  the 
income  derived  from  it  may  be  collected. 


188  THE   NATIONAL    DEBT. 


National  Debt  of  the  United  States. 

The  following  is  a  statement  of  the  Public  Debt  of  the 
United  States  on  the  1st  or  March,  1866  : — 


Debt  bearing  Coin  Interest. 


6  per  cent.  Bonds,  Dec.  31, 1867,  and  July  1, 1868     .  $18,323,591.80 

6  per  cent.  Bonds,  Jan.  1, 1874        ....  20,000,000.00 

5  per  cent.  Bonds,  Jan.  1, 1871 7,022,000.00 

6  per  cent.  Bonds,  Dec.  31, 1880,  and  June  30,  1881, 

called  6's  of  '81 .  282,693,100.00 

6  per  cent.  5-20  Bonds,  May  1, 1867,  or  May  1, 1882, 

int.  May  and  Nov 514,780,500.00 

6  per  cent.  5-20  Bonds,  Nov.  1, 1869,  or  Nov.  1, 1884, 

int.  May  and  Nov 100,000.000.00 

6  per  cent.  5-20  Bonds,  Nov.  1,  1870,  or  Nov.  1,  1885  61,263,000.00 

5  per  cent.  10-40  Bonds,  March  1,  1874,  or  March  1, 

1904             -  172,769,100.00 

6  per  cent.  Bonds,  Oregon  War.,  July  1, 1881         .  1,016,000.00    $1,177,867,291.80 

Debt  bearing  Currency  Interest. 

6  per  cent.  Bonds,  Union  Pacific  R.R.  Co.,  Nov.  1, 

1895 $1,632,000.00 

6  per  cent.  Bonds,  Central  Pacific  R.R.  Co.,  Jan.  16, 

1895 2,362,000.00 

4,  5,  6  per  cent.  Temporary  Loan,  ten  days'  notice 

after  thirty  days 118,577,939.50 

Certificates  of  Indebtedness  1  year  from  date       .  62,264,000.00 

1  and  2  year  5  per  cent,  notes,  1  and  2  years  from 

date    ....  8,536,900.00 

3-year  Compound  Interest  Notes,  3  years  from  date,    174,012,141.00 

3-year  7-30  Treasury  Notes,  3  years  from  date      .        818,044,000.00    $1,185,428,980.50 

Matured  Debt  not  presented  for  Payment. 

Texas  Indemnity  Bonds $618,000.00 

3-year  7-30  Treasury  Notes 167,350.00 

Bonds 81,268.00 

Treasury  Notes .  118,161.64 

Temporary  Loan,  coin 1,200.00            $985,979.64 

Debt  bearing  no  Interest. 

United  States  Notes $423,435,373.00 

Fractional  Currency 27,523,734.52 

Gold  Certificates  of  Deposit 12,627,600.00      $463,586,707.52 

Total  Debt $2,827,868,959.46 


THE   NATIONAL    DEBT.  189 

The  Public  Debt  of  the  United  States  on  the  1st  OF 
March,  1867 : — 

Debt  bearing  Coin  Interest. 

6  per  cent.  Bonds $198,091,350.00 

6  per  cent.  Bonds,  '67  and  '68        ...  15,679,591.80 

6  per  cent.  Bonds,  1881 283,745,250.00 

6  per  cent.  5-20  Bonds 954,839,000.00 

Navy  Pension  Fund 12,500,000.00    $1,464,855,191.80 

Debt  bearing  Currency  Interest. 

6  per  cent.  Bonds $12,922,000.00 

3  year  Compound  Interest  Notes  ....         141,308,830.00 

3  year  7-30  Notes 632,798,050.00      $787,028,880.00 

Matured  Debt  not  presented  for  payment 14,576,689.07 

United  States  Notes $376,235,626.00 

Fractional  Currency 29,514,722.32 

Gold  Certificates  of  Deposit 18,376,180.00        424,126,528.32 

Total  Debt $2,690,587,289.19 

Amount  in  the  Treasury. 

Coin     .  $107,271,031.12 

Currency 52,552,368.27         159,823,399.39 

Amount  of  Debt,  less  casb,  in  Treasury $2,530,763,889.80 

The  foregoing  is  a  correct  statement  of  the  public  debt,  as  appears 
from  the  books  and  Treasurer's  returns  in  the  Department  on  the  1st 
of  March,  1867.  (Signed)  Hugh  McCulloch, 

Secretary  of  the  Treasury. 

Reduction  of  debt  in  one  year $137,281,670.00 

Amount  in  Treasury. 

March  1, 1866.    March  1, 1867. 

Coin $55,736,192  $107,271,031 

Currency 60,2S2,767  52,552,368 

Total $116,018,959  $159,823,399 

Debt,  less  amount  in  Treasury  March  1, 1866 $2,711,850,000 

Debt,  less  amount  in  Treasury  March  1, 1867 2J530,763,890 

Actual  reduction  of  debt  in  one  year $181,086,110 

At  this  rate  of  reduction,  the  entire  debt  could  be  paid  in  fifteen 
years. 

Receipts  and  Expenditures  of  the  United  States  for  the  year  ending 
June  30th,  1866. 

EXPENDITURES. 


RECEIPTS. 

From  Customs  .        .        .  $179,046,630.64 

From  Public  Lands      .  665,031.03 

From  Direct  Tax      .        .  1,974,754.12 

From  Internal  Revenue  309,226,812.81 

From  Miscellaneous        .  65,125,966.46 


Total      .        .  •    .        $556,039,195.06 
Total  receipts 


Civil,  Foreign  and  Mis.      .  $41,049,965.96 

Pensions  and  Indians    .  16,253,300.44 

War 284,449.701.82 

Navy        ....  43,519.632.21 

Interest        ....  133,074,737.27 

Total        .        .        ,      $518,347,337.70 
$556,039,195.06 


Total  expenditvires    .        .        .  618,347)837.70 

Excess  of  receipts        .        .        .        ,  •      ,       $37,691,857.36 


190  THE  NATIONAL  DEBT. 


UNITED  STATES  BONDS. 


338.  The  term  "  Five-Twenties"  is  applied  to  the  6% 
gold-bearing  bonds  of  the  United  States,  to  which  twenty 
years'  half-yearly  coupons  are  attached,  but  which  may  be  paid 
off  in  gold  by  the  Government,  on  due  notice  to  the  holders, 
at  any  time  after  jive  years. 

339.  The  5-20's  which  were  issued  May  1,  1862,  called 
"  Old  5-20's,"  because  they  were  the  first  issued,  are  redeem- 
able after  May  1,  1867,  payable  May  1,  1882.  They  bear 
interest  at  6  °f0  payable  on  May  1st  and  November  1st. 

340.  The  5-20's  of  1864  were  issued  November  1, 1864. 
Interest  payable  May  1st  and  November  1st. 

341.  The  5-20's  of  1865,  November  Issue,  bear  date 
November  1,  1865.  Interest  payable  May  1st  and  Novem- 
ber 1st. 

342.  The  5-20's  of  1865,  July  Issue,  are  issued  in 
exchange  for  7-30's,  and  bear  date  July  1,  1865.  Interest 
on  them  is  payable  January  1st  and  July  1st. 

343.  The  term  "Ten-Forties"  is  applied  to  the  5% 
gold-bearing  bonds  of  the  United  States,  to  which  half-yearly 
coupons  are  attached  for  40  years,  but  which  may  be  paid  off 
in  gold,  on  notice  to  the  holders,  at  any  time  after  10  years. 
Interest  on  them  is  payable,  on  the  $500  and  $1000  coupon 
bonds,  and  on  all  the  registered  bonds,  March  1st  and  Sep- 
tember 1st;  and  on  the  $100  and  $50  coupon  bonds  yearly, 
on  March  1st. 

344:.  The  "  Seven-Thirties"  represent  a  Currency  Loan 
having  3  years  to  run,  then  convertible  at  the  option  of  the 
holder  into  a  gold-interest  6%  stock  having  20  years  to  run, 
but  with  the  right  reserved  to  the  Government  of  paying  off 
the  loan  in  gold  at  any  time  after  five  years  The  term 
"  Seven-Thirties"  is  derived  from  the  rate  of  interest  which 
these  three  years'  convertible  notes  bear,  to  wit:  2  cents  per 


UNITED    STATES    SECURITIES.  191 

day  on  each  $100,  or  for  365  days,  seven  dollars  and  thirty 
cents  on  each  $100. 

The  First  Series  7-30  Treasury  Notes  are  dated 
August  15,  18(34,  and  interest  on  them  is  payable  in  cur- 
rency August  15th  and  February  15th. 

Second  Series  7-30  Notes,  the  same  as  first,  except 
that  they  bear  date  June  15,  1865,  and  interest  is  payable 
June  15th  and  December  15th.  They  are  convertible  June 
15,  1868,  either  into  5-20  bonds  or  money,  at  the  option  of 
the  holder. 

The  Third  Series  7-30  Notes,  same  as  the  first  two, 
except  that  the  Government  reserves  the  right  to  pay  the 
interest  at  any  time  at  6%  in  gold  instead  of  7-j30  in  cur- 
rency, convertible  3  years  from  their  date,  viz.,  July  15, 
1865,  into  5-20's.  Interest  payable  July  15th  and  January 
15th. 

345,  The  6  per  cents,  of  1881,  sometimes  called  the 
long  or  unconditional  6%  gold-bearing  loan,  cannot  be  re- 
deemed by  the  Government  at  all,  except  by  purchase,  until 
after  the  year  1881,  making  this  the  most  desirable  of  all  the 
United  States  loans  as  a  permanent  investment.  Interest  on 
them  is  payable  January  1st  and  July  1st. 

346.  The  terms  "Greenbacks"  and  "Legal-Tenders"  are 
convertible.     All  the  Greenbacks  are  legal  tender. 


All  gold-bearing  bonds  are  either  coupon  or  registered. 

All  the  coupon  bonds  are  issued  in  denominations  of  $50, 
$100,  $500,  and  $1000.  Registered  bonds  the  same,  with 
$5000  and  $10,000  additional. 

The  7-30  Notes  are  issued  in  sums  of  $50,  $100,  $500, 
$1000,  and  $5000,  all  with  coupons  attached. 

Any  coupon  bonds  will  be  exchanged  by  the  Government 
for  registered  of  the  same  issue. 


192  TREASURY  REGULATIONS. 


UNITED  STATES  TREASURY  DEPARTMENT  REGULATIONS. 

347.  Instructions  to  Correspondents. — "  Letters  re- 
lating to  the  redemption  of  public  securities,  the  conversion  of 
7T3C  Treasury  Notes,  or  the  exchange  of  coupon  bonds  for  regis- 
tered certificates,  should  be  addressed  to  the  Secretary  of  the 
Treasury.  Letters  relating  to  the  transfer  of  registered  stock, 
or  payment  of  interest  on  the  same,  should  be  addressed  to 
the  Register  of  the  Treasury.  The  transfer-books  are  closed 
for  thirty  days  previous  to  the  day  for  payment  of  dividends, 
and  stockholders  desiring  the  place  of  payment  changed, 
must  give  notice  to  the  Register  one  month  at  least  before  the 
day  of  payment.  When  bonds  are  sent  for  transfer,  state 
where  interest  is  to  be  made  payable,  and  always  inclose  stock 
of  different  loans  in  separate  letters.  When  specifying  the 
different  loans,  or  referring  to  the  interest,  name  the  amount 
of  stock,  and  describe  the  loan  by  the  date  of  the  act  of 
Congress  authorizing  it.  Powers  of  attorney  for  the  assign- 
ment of  United  States  stock,  and  assignments,  must  be  pro- 
perly filled  before  transmission  to  the  Register,  as  no  blanks 
can  be  filled  in  his  office.  Powers  of  attorney  to  draw 
interest  should  be  addressed  to  the  First  Auditor  of  the 
Treasury." 

348.  The  National  Debt  of  Great  Britain  is  of  two 

kinds,  funded  and  unfunded.  When  a  certain  portion  of  the 
public  revenue  is  appropriated  for  the  payment  of  the  interest 
on  the  debt,  it  is  called  funded,  and  it  is  called  unfunded 
when  no  such  division  is  made.  Exchequer  Bills  (see 
Forms),  which  are  somewhat  similar  to  United  States  inter- 
est-bearing Treasury  Notes,  are  a  part  of  the  unfunded 
debt.  England  has  effected  loans  at  different  rates,  5,  4,  3£, 
3  per  cent.,  &c;  and  one  of  the  conditions  of  such  loans  is, 
that  while  the  stipulated  interest  is  regularly  paid,  the  Gov- 
ernment cannot  be  called  upon  to  return  the  principal. 


NATIONAL   DEBTS. 


193 


349.  Consols  are  a  3^  English  stock,  which  had  its 
origin  in  the  act  of  Parliament  consolidating  several  separate 
Government  stocks,  called  in  the  act  Consolidated  Annuities, 
and  commonly  quoted,  for  brevity,  "  Consols." 

The  stock,  from  its  amount,  and  the  immense  number  of 
its  holders,  is  more  sensitive  to  financial  influence  than  any 
other.  Its  dividends  are  payable  semi-annually, — January 
5th  and  July  5th. 

350.  The  other  kinds  of  stock,  bearing  3%,  are  the  Re- 
duced Annuities,  which  formerly  bore  a  higher  rate  of  in- 
terest, and  the  New  Three  per  cent.  Annuities. 


NATIONAL   DEBTS. 


Average  Amount 
per  capita. 

133.33 

53.63 
103,70 

21.06 

20.23 

35.37 

46.56 
117.43 

15.51 

12.21 

41.25 
103.60 

20.00 


1.  Whak  is  the  annual  interest  on  the  debt  of  England,  at 
the  average  rate  of  3 J  per  cent.,  and  what  is  the  proportion 
for  each  inhabitant  to  pay  ? 

2.  What  is  the  annual  interest  on  the  debt  of  the  United 
States,  as  per  Statement  March  1st,  IF/67,  and  how  much  is 
each  person's  share,  interest  calculated  at  6%  on  the  entire 
debt? 

N  17 


Debt. 

Population. 

Great  Britain, 

$3,999,010,695 

30,000,000 

United  States, 

2,145,000,000 

40,000,000 

France, 

3,744,000,000 

36,103,000 

Austria, 

1,580,000,000 

75,000,000 

Russia, 

L  395,000,000 

68,932,000 

Italy, 

770,000,000 

21,770,000 

Spain, 

745,000,000 

16,000,000 

Netherlands, 

425,000,000 

3,619,000 

Turkey, 

255,000,000 

16,440,000 

Prussia, 

291,000,000 

24,654,000 

Portugal, 

165,000,000 

4,000,000 

Hamburg, 

23,000,000 

222,000 

Greece, 

20,000,000 

1,000,000 

194  THE   STOCK   EXCHANGE. 


THE   STOCK  EXCHANGE. 

351.  The  Stock  Exchange  is  an  association  organized  for 
the  purpose  of  buying  and  selling  stock.  It  is  governed  by 
Stringent  regulations,  to  prevent  improper  persons  from  being 
admitted,  and  to  insure  fidelity  in  the  performance  of  en- 
gagements. The  members  are  elected  by  ballot ;  if  a  certain 
number  of  black  balls  appear  against  a  candidate,  he  is  re- 
jected. In  Philadelphia,  five  are  sufficient  to  prevent  his 
becoming  a  member. 

The  admission  fee  varies:  to  the  New  York  Stock  Ex- 
change it  is  $3000;  to  the  Philadelphia  and  the  Boston 
Stock  Exchange  it  is  $2000.  In  London  the  admission  fee 
is  20  guineas,  besides  a  yearly  subscription  of  10  guineas. 
The  fee  to  become  a  member  of  the  New  York  Open  Board 
is  $2000;  to  the  Gold  Board  it  is  $2500.  There  are  no 
dues  to  be  paid  in  addition,  but  members  are  fined  for  non- 
attendance. 

Rules  are  enacted  by  which  the  proceedings  of  the  Exchange 
are  governed,  disputes  settled,  and  by  which  the  prices  and 
terms  in  buying  and  selling  stocks  are  regulated.  The  charges 
in  our  large  cities  for  buying  and  selling  United  States  bonds 
are  $  per  cent.,  or  12?  cents  for  a  bond  of  $100;  for  other 
bonds,  £  per  cent.,  or  25  cents  per  $100;  for  shares  of  com- 
panies, J  per  cent.,  or  25  cents  per  share  when  the  par  value 
of  the  shares  is  $50  or  more ;  when  the  par  value  is  between 
$5  and  $50,  i  per  cent.,  or  12£  cents  per  share;  when  $5  or 
less,  6£  cents  per  share.  In  London,  the  commission  on  the 
sale  or  purchase  of  stock  in  the  English  or  foreign  funds  is  i, 
or  2s.  6d.  per  cent. ;  on  exchequer  bills,  Is.  per  cent. ;  on 
railway  shares,  when  over  £50  in  value,  £  per  cent,  upon  the 
value. 

Stock  is  bought  and  sold  during  the  sessions,  or  u  boards, " 
as  they  are  termed,  at  which  time  a  clerk  calls  the  names  of 


THE   STOCK    EXCHANGE.  195 

the  different  stocks  in  the  market,  and  the  members  offer  to 
sell  or  to  buy  at  a  price  which  they  mention. 

A  charge  against  a  member  is  instantly  investigated,  and, 
if  he  is  found  guilty  of  misconduct,  or  fails  to  fulfil  his  en- 
gagements, he  is  expelled. 

The  Stock  Exchange  has  a  language  peculiar  to  itself.  A 
stock  "  broker"  is  one  who  receives  and  executes  orders  for 
persons  who  are  not  members  of  the  exchange.  A  stock 
u  jobber"  deals  in  stocks  for  his  own  account.  A  "stag,"  or 
u  outsider,"  conducts  his  transactions  outside  the  Exchange. 

A  "  bull"  is  one  who  operates  for  a  rise  in  prices, — so  called 
from  the  nature  of  a  bull  to  toss  with  his  horns.  He  is  usually 
one  who  has  agreed  to  purchase  stock,  without  any  intention 
of  holding  or  paying  for  it,  but  with  a  view  to  sell  out  again 
before  "settling-day"  arrives.  A  "bear"  is  one  who  en- 
deavors to  depress  prices, — so  called  from  the  nature  of  a  bear 
to  tear  down  with  his  claws.  He,  generally,  has  agreed  to 
deliver  more  stock  than  he  possesses,  and  is  consequently 
obliged  to  buy  in  order  to  settle  his  account.  A  "  lame  duck" 
is  a  member  unable  to  fulfil  his  contracts,  and  is  therefore 
expelled. 

"  Opening-day"  is  the  first  day  the  books  of  a  corporation 
are  opened  after  a  dividend  has  been  declared. 

The  term  "  selling  short"  is  applied  to  sales  of  stock  which 
the  seller  does  not  own,  and  over  which  he  has  no  control. 
Securities  sold  in  this  manner  are  generally  deliverable  at  a 
specified  time,  not  exceeding  60  days.  If  the  contract  is  for 
a  longer  period  than  three  days,  the  seller  receives  interest. 

"  Seller's  option"  gives  the  person  selling  the  privilege  of 
making  delivery  at  any  time  intervening  before  the  expiration 
of  that  mentioned  in  the  contract,  by  his  giving  one  day's  notice. 
"  Buyer's  option"  gives  the  purchaser  a  claim  for  delivery  at 
any  time  before  the  maturity  of  the  contract,  by  a  similar 
notice.  The  contract  must  be  settled  at  least  by  maturity, 
unless  extended  by  mutual  agreement.     The  transactions  are 


196 


STOCK   QUOTATIONS. 


adjusted  by  delivery  of  property,  or  the  payment  in  cash  of 
the  difference  in  prices.  A  postponement  of  settling-day  ia 
termed  a  "  contango."  By  a  law  in  Pennsylvania,  contracts 
for  the  sale  of  stock  to  be  executed  or  performed  at  any  future 
period  exceeding  sixty  judicial  days  next  ensuing  the  date  of 
such  contracts,  are  prohibited  under  Lsavy  penalties. 

The  "  cornering"  process,  or  "  getting  up  a  corner,"  is  the 
act  of  a  combination  of  operators,  and  is  always  the  result  of 
short  sales.  All  the  floating  shares  of  a  company  are  bought 
for  future  delivery,  and  when  the  stock  has  been  rendered 
scarce  in  this  manner,  the  shares  thus  bought  are  suddenly 
called  for,  to  the  loss  of  the  short  sellers,  who  are  obliged  to  buy 
at  an  advanced  rate,  or  pay  the  buyer,  the  difference  in  price. 

The  following  extract  was  taken  from  the  United  States 
Gazette : — 

REPORTED  BY  JAY  COOKE  &  CO.,  BANKERS. 


26000  TJ.  S.  5-20  bonds, 
100  Reading  R.R.,  2  ds., 
100      "  "       5w.ii., 

1000  Camden  &  Amboy  6's,  1889 

100  Reading  R.R.,  b.  30, 

100  N.  Y.  Central,  b.  15  and  int., 

15500  U.  S.  6's,  1881,  lots, 

100  U.  S.  Treasury  7-30  F.  &  A., 

100  Catawissa  pref.  8.,  w.n., 
2000  Penna.  R.R.,  2d  M.,  6's, 
100  Penna.  6's,  int.  off, 

100      "       5'b, 

400      ■       R.R.  ex.  div., 
600  Phila.  &  Erie  R.R.,  b.o., 


300 


s.o., 


103| 
51| 


108* 

67? 
103 
109* 

11H 

26 
100i 
104 


31 


EXPLANATION. 

5-20  bonds  at  $3.62*  premium. 
Railroad  stock  sold  at  2  days'  credit. 
"  "       to  bo  delivered  beforo  five 

days,  without  notice. 
6  per  cent,  bonds,  due  in  1889,  at  8*  per 

cent,  premium. 
To  be  delivered  before  30  days. 

"  "  before  15  days,  with  int. 

TJ.  S.  6  per  cent,  bonds,  due  in  1881,  soid 

in  lots,  aggregating  $15,500. 
7-30  bonds,  interest  payable  in  February 

and  August.  A.  &  O.  means  Apr.  &  Oct. 
Catawissa  preferred  stock,  without  notice. 
Second  mortgage,  bearing  6  per  cent.  int. 
Penna.  6  per  cent,  bonds,  the  interest  last 

due  having  been  paid. 
Penna.  bonds,  bearing  5  per  cent,  inter- 
est. 
Penna.  R.R.  shares  without  dividend. 
500  shares  at  $32,  at  buyer's  option  when 

to  take  the  stock. 
300  shares  at  $31,  at  seller's  option  when 

to  deliver  the  stock. 


The  value  of  a  given  number  of  shares  is  found  by  multi- 
plying the  number  of  shares  by  the  price  per  share. 

Note. — In  finding  the  cost  of  bonds,  the  rate  of  brokerage  may  be 
added  to  the  price,  as  the  brokerage  and  price  are  both  calculated  on  the 
game  amount. 


DIVIDENDS   AND   INVESTMENTS.  197 

Example  1. — What  must  I  pay  for  100  shares  of  Chicago 
&  Hock  Island  R.R.  stock,  purchased  at  $112.50  per  share, 
brokerage  at  \°f0  an(i  revenue  stamp  included? 
100  shares  @  $112.50,  $11250. 

\c/o  on  $10000,  par  value  of  100  shares,  25. 

Revenue  stamp,  lc.  on  every  $100  of  sales,  1.13 

$11276.13 

Ex.  2. — What  will  I  receive  if  I  sell  300  shares  Cleveland 
&  Pittsburg  R.R.  stock,  @  $72.00,  after  paying  for  revenue 
Btamp  and  brokerage  @  i  %  per  share  ? 

$72  X  300  =  $21600 

300  shares  at  \%  per  share  (par  value,  $50)  =  $75.00 
Revenue  stamp,  2.16 

$77.16 

$21600  —  77.16  =  $21522.84,  Ans. 

To  find  the  dividend  on  any  given  number  of  shares  of 
stock. 

Rule. — Multiply  the  par  value  of  the  stock  by  the  rate  of 
dividend,  and  divide  the  product  by  100. 


EXAMPLES. 

1.  If  I  own  100  shares  of  Penna.  Railroad  stock,  the  par 
value  of  which  is  $50,  how  much  will  I  receive  when  a  divi- 
dend of  5%  is  declared? 

50  X  5       =  2.50,  dividend  on  1  share. 
100  X  2.50  =  250,  «       "  100  shares.      Ans.  $250. 

2.  How  much  will  a  stockholder  of  the  New  York  Central 
Railroad  Co.  receive  of  a  4%  dividend,  who  owns  500  shares, 
the  par  value  being  $100  per  share  ? 

352.  To  find  the  rate  of  dividend. 

Rule. — Multiply  the  dividend  by  100,  and  divide  by  tht 

par  value  of  the  stock. 

17* 


198  DIVIDENDS    AND    INVESTMENTS. 

EXAMPLES. 

1.  The  receipts  of  a  mining  company  in  one  year  are 
$170,000,  clear  of  all  expenses.  The  company  has  a  capital 
of  $500,000,  divided  into  shares  of  $10  each.  Reserving 
$50,000  as  a  contingent  fund,  what  rate  of  dividend  can  it 
declare  for  the  year  ?  what  per  month  ?  and  how  much  can 
be  paid  on  each  share  of  stock  ? 

170000  —  50000  =  120000,  amount  to  be  divided. 
120000  X  100  =  12000000         12000000  -+-  500000  =  24. 

Ans.  24%  yearly.  2%  monthly,  20c.  per  month  on  each  share. 
Proof.—  24%  of  500000  =  120000,  dividend  to  be  declared. 

2.  A  man  subscribed  for  300  shares  of  stock  in  a  manu- 
facturing company,  the  par  value  of  which  was  placed  at  $50 
per  share ;  but,  after  paying  three  instalments,  amounting  to 
75%  per  cent,  of  the  par  value,  a  dividend  of  3%  was  de- 
clared. How  much  will  he  receive,  and  at  what  rate  per 
cent,  on  the  actual  cost  ? 

3%  of  50  =  1.50,  dividend  on  one  share. 

1.50  X  300  =  $450 j  dividend  on  300  shares. 

75%  of  50  =  $37.50 

1.50  X  100  =  150.00  150.00  -*-  37.50  =  4 

Ans.  $450.     Total  dividend  =  4%  on  actual  cost. 

353.  To  find  what  rate  of  income  will  be  derived  from  a 
given  investment. 

Rule. — Multiply  the  income  by  100,  and  divide  the  product 
by  the  amount  invested. 

EXAMPLES. 

1.  If  I  buy  railroad  stock  at  a  premium  of  6  per  cent.,  and 
pay  1  per  cent,  brokerage,  what  per  cent,  of  income  will  I  re- 
ceive if  its  annual  dividend  is  7  per  cent.  ? 

7X100  =  700      700 -f- 106*  =  61$  Ans.  6f?%. 

2.  What  per  cent,  will  I  receive  if  I  buy  stock,  which  pays 
4%  dividend,  at  a  discount  of  20%  ? 

100  —  20  =  80,  amount  invested. 

4X100  =  400        400  -f~  80  =m  5  Ans.  5  %. 


DIVIDENDS   AND    INVESTMENTS.  199 

3  If  I  pay  106  for  United  States  6%  bonds,  having  15 
years  to  run,  what  per  cent,  will  I  receive  if  I  keep  them 
until  they  mature,  and  then  obtain  the  principal  ? 

6%  per  year  for  15  years  =  $90  interest. 
Principal,  100 

Total  amount  received,  190 

Cost  of  bond,  106 

Total  income,  84 

To  find  what  rate  is  required  for  106  to  gain  84  in  15  years,  see 
Art.  79. 

106  at  \%  =  1.06  X  15  =  15.90,  interest  at  1%  for  15  years. 
15.90)8400(5.283+  Ans.  64Afr*. 

7950 

4500 
3180 


13200 
12720 


4800 
4770 

Note. — The  interest  on  the  semi-annual  payments  of  interest  is  also  to 
be  considered. 

4.  What  rate  per  cent,  will  be  gained  if  I  purchase  United 
States  5-20  bonds,  at  a  premium  of  8%,  if  they  are  paid  at 
the  end  of  6  years  ?  Ans.  4§J. 

354.  To  find  the  price  to  be  paid  for  stock  to  obtain  a  given 
rate  upon  the  investment. 

Rule. — Annex  two  ciphers  to  the  rate  per  cent,  which  the 
stock  produces,  and  divide  by  the  required  rate;  the  quotient 
will  be  the  price  to  be  paid 

EXAMPLES. 

1.  At  what  price  must  railroad  stock  be  purchased,  which 
pays  6%  on  the  par  value  of  $100,  in  order  to  obtain  7% 
income  on  the  investment? 

600 --7  =  85.71$  Ans.  $85.71. 

2.  At  what  price  must  I  purchase  railroad  stock  of  the 
par  value  of  $50  per  share,  which  pays  a  dividend  of  6%, 
that  I  may  obtain  an  income  of  8%  on  the  investment? 

Ans.  $37.50. 


200  DIVIDENDS   AND   INVESTMENTS. 

3.  If  I  receive  9%  on  my  investment  in  a  company  which 
pays  a  dividend  of  6  % ,  at  what  price  did  I  purchase  ? 

4.  At  what  price  must  5  %  stock  be  purchased  in  order  to 
obtain  6%  on  the  investment? 

5.  At  what  premium  ought  an  8%  stock  to  sell,  to  equal 
6%  stock?  Ans.  33£. 

6.  At  what  rate  must  6%  stock  be  purchased  to  equal  8<f0 
stock?  to  equal  10%  stock? 

355.  To  find  what  rate  must  be  obtained,  that  a  given  sum 
invested  may  bring  a  given  income. 

Rule. — Multiply  the  given  income  by  100,  and  divide  the 
product  by  the  sum  invested. 

EXAMPLE. 

If  I  invest  $5000,  what  rate  per  cent,  must  I  receive  to 
obtain  an  income  of  $325  per  year? 

32500  -5-5000  =  6*%. 

356.  To  find  what  sum  must  be  invested,  that  a  given  in- 
come may  be  obtained. 

Rule. — Divide  the  required  income  by  the  rate  of  income 
per  share,  or  per  $100,  for  the  number  of  shares  or  bonds  re- 
quired, and  multiply  the  quotient  by  the  given  price. 

examples. 

1.  What  sum  must  be  invested  in  United  States  6%  bonds, 
at  108,  to  realize  an  income  of  $1200  per  annum? 

$6  =  income  per  $100,— $108  the  price  of  $100  bonds. 
1200  -4-  6  =  200,  the  number  of  bonds  of  $100  each. 
200  X  108  =  21600. 

Ans.  $21600. 

2.  What  sum  must  be  invested,  at  $65  per  share,  in  rail- 
road stock  which  pays  a  dividend  of  10  %  on  the  par  value 
of  $50  per  share,  in  order  to  obtain  an  income  of  $520  ? 

fa  of  $50  =  $5,  income  per  share. 

$520  -=-  $5  =  104,  the  number  of  shares. 
104  X  $65  =  $6760.  Ans.  $6760. 


DIVIDENDS    AND    INVESTMENTS.  201 

3.  If  United  States  Ten-Forties  are  selling  at  93,  how 
much  must  I  invest  in  them  to  obtain  a  yearly  income  of 
$1900,  after  paying  5  %  income  tax? 

357.  To  find  the  par  value,  when  the  premium  or  discount 
is  given. 

Rule. — Divide  the  given  value  of  the  stock  by  1  increased 
by  the  rate  per  cent,  of  premium,  or  diminished  by  the  rate 
per  cent,  of  discount. 

EXAMPLES. 

1.  Bought  Mechanics'  National  Bank  stock  for  29,  at 
which  price  I  paid  a  premium  of  16%.  What  is  the  par 
value?  Ans.  $25. 

2.  Sold  Worcester  &  Nashua  Railroad  stock  for  $91.66|, 
and  received  10  %  above  the  par  value.  What  is  the  par 
value?  Ans.  $83.33i 

3.  Bought  Philadelphia  &  Erie  Railroad  stock  for  $47, 
which  is  6  %  below  par.     What  is  the  par  value  ? 

4.  Bought  Fulton  Bank  stock  at  500%  premium,  for  8180. 
What  is  the  par  value  of  the  shares  ?  Ans.  $30. 

358.  To  find  at  what  price  a  bond,  having  several  years  to  run, 
must  be  purchased,  that  the  interest  and  final  payment  will 
be  equivalent  to  a  given  rate  per  annum  on  the  investment. 

Rule. — I.  Find  the  Amount  of  the  given  bond. 

II.  Find  the  present  worth  of  this  amount  at  the  proposed 

rate. 

Note. — No  account  is  taken  in  this  rule  of  interest  on  the  annual  pay- 
ments of  interest. 

EXAMPLES. 

1.  What  shall  I  pay  for  a  bond  of  $100,  having  5  years  to 
run,  with  interest  at  6%,  in  order  to  make  it  an  8%  invest- 
ment? 

Amount  of  $100  for  5  years  =  $130. 
By  Art.  84,  130  -*-  1.40  =  92.86.  Ans.  $92.86. 

Interest  on  $92.86  at  8%  for  5  yrs.  =  37.14.     92.86  +  37.14  =  130. 

2.  At  what  price  must  I  buy  United  States  5-20  Bonds, 
if  they  are  paid  in  4  years,  in  order  to  gain  7%  en  my  in- 
vestment ? 


202 


STOCK   TABLE. 


3.  Bought  Kentucky  State  Bonds,  bearing  5%  interest, 
payable  in  3  years,  and  received,  when  I  obtained  the  prin- 
cipal, 6%  on  my  investment.     What  did  I  pay? 


MISCELLANEOUS. 

1.  What  rate  per  cent,  will  the  purchaser  of  Philadelphia 
Bank  stock  receive  on  his  investment  if  the  premium  on  the 
stock  is  35  °lo  and  the  bank  pays  an  annual  dividend  of  8  %  ? 

Ans.  &##. 

2.  Which  is  the  most  profitable, — United  States  10-40 
Bonds  purchased  at  95,  or  the  5-20  Bonds  purchased  at  105? 

3.  Which  is  the  better  investment,  a  ground-rent  bearing 
6%  interest,  purchased  at  98%,  or  railroad  stock  purchased 
at  10%  premium,  which  pays  an  annual  dividend  of  7%? 
and  how  much  ? 

4.  What  interest  will  a  person  receive  who  purchased 
United  States  5-20  Bonds  at  104,  if  he  sells  the  gold  re- 
ceived for  interest  at  a  premium  of  30  %  ? 


STOCK    TABLE, 

Showing  the  rate  of  Interest  received  on  Stocks  purchased,  from  25 
per  cent,  discount  to  25  per  cent  premium. 


RATE  RECEIVED  ON  STOCK  BEARING  INTEREST  AT 

Purchase 

Price. 

5  per  cent. 

6  per  cent. 

7  per  cent. 

8  per  cent. 

10  per  cent. 

75. 

6.666 

8.00 

9.333  • 

10.666 

13.333 

80. 

6.25 

7.50 

8.75 

10.000 

12.500 

85. 

5.882 

7.143 

8.235 

9.411 

11.764 

90. 

5.555 

6.666 

7.777 

8.888 

11.111 

95. 

5.263 

6.316 

7.263 

8.421 

10.526 

97  50 

5.128 

6.156 

7.179 

8.205 

10.256 

100. 

5.000 

6.000   ■ 

7.000 

8.000 

10.000 

105. 

4.761 

5.714 

6.666 

7.619 

9.523 

110. 

4.545 

5.454 

6.363 

7.272 

9.090 

115. 

4.347 

5.130 

6.086 

6.956 

8.695 

120. 

4.166 

5.000 

5.833 

6.666 

8.333 

125. 

4.000 

4.800 

5.600 

6.400 

8.000 

UNITED    STATES    BONDS    IN   EUROPE.  203 


UNITED   STATES   BONDS   IN   EUROIE. 

The  Five-Twenty  Bonds  issued  in  1862,  called  the  "Old" 
5-20 's,  were  the  first  known  in  Europe,  and  for  that  reason 
are  in  greatest  demand,  causing  an  advance  over  the  issues 
of  1864  and  1865  of  1  §  to  4 J  per  cent.  The  real  value  of 
the  different  issues  is  the  same. 

The  quotations  in  London,  Paris,  Frankfort,  Hamburg, 
and  other  places,  are  the  prices  of  $100  bonds  in  American 
gold.  Thus,  "Frankfort,  Feb.  9th,  U.  S.  5-20's  76£,"  signi- 
fies that  $76.25  in  U.  S.  coin  is  the  price  of  a  bond  for  $100. 

The  interest  which  has  accrued  at  the  time  of  purchase 
forms  a  part  of  the  value  of  the  bond. 

The  principal  causes  of  the  difference  in  the  quotations  on 
the  same  day  are  the  fluctuations  in  the  rate  of  exchange  and 
the  difference  in  the  basis  of  calculation. 

It  is  necessary  also  to  know  whether  the  "  old"  or  "  new" 
issue  is  meant.  The  telegraphic  report  frequently  omits  the 
date  of  issue ;  in  the  Stock  Exchange  Circular,  the  prices  of 
both  are  given. 

To  understand  the  subject  fully  requires  a  knowledge  of 
exchange  and  stock  calculations,  and  an  acquaintance  with 
the  customs  and  manner  of  dealing  among  bankers 


Foreign 

Stock  Quotations. 

(per 

ATLANTIC    CABLE.) 

London,  Mar.  1. 

U.  S.  5-20's, 

73*. 

Illinois  Central  R.  R., 

761. 

Erie  R.  R., 

36J. 

Parts,           " 

U.  S.  5-20's, 

821. 

Frankfort,  " 

((            u 

76f. 

London,  Mar.  23. 

u           a 

74*. 

Frankfort,  " 

H           a 

77*. 

204  UNITED   STATES    BONDS    IN    EUEDPE. 

London  Quotations. — The  price  quoted  in  London  is 
at  the  nominal  par  of  4s.  6d.  per  dollar,  or  $4.44|  per  pound 
sterling.  To  this  about  9£%  must  be  added  for  the  differ- 
ence between  the  old  par  and  the  present  value  of  our  coins. 

To  obtain  the  currency  value,  the  premium  on  gold  must 
also  be  added. 

EXAMPLES. 

What  is  the  value  of  $1000  in  U.  S.  5-20  Bonds  when 
quoted  at  70  and  the  premium  on  gold  is  35%  ? 

1000 
70 


700.00  Nominal  par  value. 
9*% 


630000 
35000 


66.5000  Exchange  premium. 
700 

766.50       Value  in  American  gold. 
35% 


383250 
229950 


268.2750       Premium  on  price  in  gold. 
766.50 

Ans.  1034.7750     $103.48  rate  in  United  States. 

To  a  resident  of  the  United  States  a  purchase  in  London  like  thig 
would  require  an  addition  of  1  ^  commission,  and  interest  equal  to 
h%  more,  which  increases  the  price  to  $105.03.  The  proceeds  of  a 
sale  would  be  $1.55  less  than  $103.48  =  $101.93. 

2.  When  gold  is  at  a  premium  of  33%,  what  will  be  re- 
ceived  from  a  sale  of  $5000  U.S.  5-20's,  at  72,  allowing 
commission  and  interest  at  1  $  %  ? 

3.  How  much  will  a  5-20  Bond  for  $5000,  purchased  in 
London,  cost,  in  currency,  when  exchange  is  109,  and  gold 
is  at  a  premium  of  30%,  allowing  commission  at  1%  ? 


UNITED    STATES   BONDS   IN    EUROPE.  205 

Paris  Quotations. — In  Paris  the  price  of  exchange 
affects  the  quotations.  On  the  Paris  Bourse  the  honds  are 
estimated  on  the  conventional  basis  of  5  francs  to  the  dollar, 
while  the  actual  value  of  a  dollar  in  exchange  transactions  is 
5.10  and  5.15,  equal  to  a  difference  of  $2  to  $3  on  $100. 

London  quotations,  being  based  on  the  old  par,  require  the 
addition  of  about  9*%  and  the  difference  between  the  Paris 
Bourse  rates  and  actual  exchange  rates,  to  give  the  compara- 
tive value  of  both  places. 

Example.— February  23,  1867.  London,  U.  S.  5-20's 
73|;  Paris,  83*. 

Premium  on  $73.75  @  91%,  =   $7.00 

Difference  between  Bourse  and  exch.  rates  =     2.50 

To  be  adde<^  to  London  rate,  9.50 

73.75  -f  9.50  =  83.25  Paris  rate,  as  above. 

Note. — The  difference  between  the  Bourse  rate  and  the  exchango  rate 
should  be  taken  from  the  Paris  quotations  to  obtain  the  real  price  in 
Paris. 

In  Frankfort,  when  American  gold  is  not  paid,  the  value  is 
computed  at  the  rate  of  2  $  guilders  per  dollar. 

1.  On  March  1,  1867,  the  quotations  per  Atlantic  Cable 
were:  London,  U.S.  5-20's  73i;  Frankfort,  76|.  In  New 
York,  exchange  on  London  the  same  day  was  109. 

Value  of  $73.25  in  London,  @  9%  prem.,      79.84 
Price  in  Frankfort,  76.62 

Difference  between  London  and  Frankfort,         3.22 
'     With  exchange  on  Frankfort  at-ilf,  the  difference  is  but 
a  trifle. 

2.  On  the  same  day,  Illinois  Central  K.  R.  stock  was  quoted 
in  London  at  76i,  Erie  Railroad  at  36J.  What  are  these 
prices  equivalent  to  in  U.S.  currency,  gold  being  at  140? 

3.  What  is  the  value  per  £  in  United  States  currency  of  a 
bill  of  exchange  on  England,  when  quoted  at  153,  which 
includes  the  exchange  premium  and  premium  on  gold  ? 

18 


206  COMPOUND    INTEREST.         / 

COMPOUND   INTEREST. 

360.  Compound  Interest  is  interest  on  both  principal 
and  interest. 

361.  To  compute  compound  interest. 

Rule. — Find  the  interest  on  the  given  principal  to  the  time 
the  interest  becomes  due,  and  add  the  principal.  Then  find  the 
interest  on  this  amount  for  the  next  period,  and,  add  as  before, 
and  so  continue  for  each  successive  period  to  the  time  of  settle- 
ment. 

Subtract  the  given  principal  from  the  last  amount,  and  the 
remainder  will  be  the  compound  interest. 

When  the  time  is  for  years,  months,  and  days,  find  the  amount 
for  the  years,  and  the  interest  on  this  for  the  remainder  of  the  time. 

When  interest  is  payable  oftener  than  once  a  yeftr,  find  the  amount 
for  each  interval  in  the  same  manner  as  when  the  interest  is  pay- 
able yearly. 

EXAMPLES. 

1.  What  is  the  compound  interest  of  $500  for  3  years,  at 

5%? 

$500  Given  principal. 
.05 

25.00  Interest  for  first  year. 
500 


525.00  Principal  for  second  year. 
.05 

26.25        Interest  for  second  year. 

525 


551.25        Principal  for  third  year. 
.05 


27.5625        Interest  for  third  year. 
551.25 

578.8125       Amount  for  three  years. 
500  Given  principal. 

$78.8125        Compound  interest  for  3  years. 

2.  What  is  the  compound  interest  of  $425  for  4  years,  at 

6%  ?  of  $275.50  for  3  years,  6  months,  at  7%  ? 


COMPOUND    INTEREST. 


207 


362.  The  labor  of  computing  Compound  Interest  may  be  much 
abridged  by  the  use  of  the  following  tables. 

TABLE   I. 

Showing  the  amount  of  One  Dollar  at  Compound  Interest,  from  £ 
to  4i  per  cent,  for  any  number  of  years  not  exceeding  twenty. 


i  per  cent. 

li  per  cent. 

2  per  cent. 

2\  per  cent. 

1 

1.005000 

1.015000 

1.020000 

1.025000 

1 

2 

1.010025 

1.030220 

1.040400 

1.050625 

2 

3 

1.015075 

1.045670 

1.061208 

1.076891 

3 

4 

1.020150 

1.061350 

1.082432 

1.103813 

4 

5 

1.025251 

1.077270 

1.1040S1 

1.131408 

5 

6 

1.030377 

1.093429 

1.126162 

1.159693 

6 

7 

1.035529 

1.109830 

1.148686 

1.188686 

7 

8 

1.041207 

1.126479 

1.171659 

1.218403 

8 

9 

1.046413 

1.143375 

1.195093 

1.24S863 

9 

10 

1.051645 

1.160526 

1.218994 

1.280085 

10 

11 

1.056904 

1.177934 

1.243374 

1.312087 

11 

12 

1.062188* 

1.195603 

1.268242 

1.344889 

12 

13 

1.067499 

1.213537 

1.293607 

1.378511 

13 

14 

1.072836 

1.231740 

1.319479 

1.412974 

14 

15 

1.078199 

1.250216 

1.345868 

1.448298 

15 

16 

1.083589 

1.208969 

1.372786 

1.484506 

16 

17 

1.089007 

1.288003 

1.400241 

1.521618 

17 

18 

1.094452 

1.307323 

1.428246 

1.559659 

18 

19 

1.099924 

1.326932 

1.456811 

1.598650 

19 

20 

1.105424 

1.346835 

1.485947 

1.638616 

20 

3  per  cent. 

3^  per  cent. 

4  per  cent. 

44.  per  cent. 

1 

1.030000 

1.035000 

1.040000 

1.045000 

1 

2 

1.060900 

1.071225 

1.081600 

1.092025 

2 

3 

1.092727 

1.108718 

1.124864 

1.141166 

3 

4 

1.125509 

1.147523 

1.169859 

1.192519 

4 

5 

1.159274 

1.187686 

1.216653 

1.246182 

5 

6 

1.194052 

1.229255 

1.265319 

1.302260 

6 

7 

1.229874 

1.272279 

1.315932 

1.360862 

7 

8 

.  1.266770 

1.316809 

1.368569 

1.422101 

8 

9 

1.304773 

1.362S97 

1.423312 

1.486095 

9 

10 

1.343916 

1.410599 

1.480244 

1.552969 

10 

11 

1.384234 

1.459970 

1.539454 

1.622853 

11 

12 

1.425761 

1.511069 

1.601032 

1.695881 

12 

13 

1.46S534 

1.563956 

1.665074 

1.772196 

13 

14 

1.512590 

1.618695 

1.731676 

1.851945 

14 

15 

1.557967 

1.675349 

1.800944 

1.935282 

15 

16 

1.604706 

1.733986 

1.872981 

2.022370 

16 

17 

1.652848 

1.794676 

1.947900 

2.113377 

17 

18 

1.702433 

1.857489 

2.025817 

2.208479 

18 

i  19 

1.753506 

1.922501 

2.106849 

2.307860 

19 

1  20 

L. 

1.806111 

1.989789 

2.191123 

2.411714 

20 
.-J 

208 


COMPOUND    INTEREST. 


TABLE    II. 


Showing  the  amount  of  One  Dollar  at  Compound  Interest,  from  6 
to  12  per  cent.,  for  any  number  of  years  not  exceeding  twenty. 


5  per  cent. 

6  per  cent. 

7  per  cent. 

8  per  cent. 

1 

1.050000 

1.060000 

1.070000 

1.080000 

1 

2 

1.102500 

1.123600 

1.144900 

1.166400 

2 

3 

1.157625 

1.191016 

1.225043 

1.269712 

3 

4 

1.215506 

1.262477 

1.310796 

1.360489 

4 

5 

1.276282 

1.338226 

1.402552 

1.469328 

5 

6 

1.340096 

1.418519 

1.500730 

1.586874 

6 

7 

1.407100 

1.503630 

1.605781 

1.713824 

7 

8 

1.477455 

1.593848 

1.718186 

1.850930 

8 

9 

1.551328 

1.689479 

1.838459 

1.999005 

9 

10 

1.628895 

1.790848 

1.967151 

2.158925 

10 

11 

1.710339 

1.89S299 

2.104852 

2.331639 

11 

12 

1.795856 

2.012196 

2.252192 

2.518170 

12 

13 

1.885649 

2.132928 

2.409845 

2.719624 

13 

14 

1.979932 

2.260904 

2.578534 

2.937194 

14 

15 

2.078928 

2.396558 

2.759031 

3.172169 

15 

16 

2.1S2875 

2.540352 

2.952164 

3.425943 

16 

17 

2.292018 

2.692773 

3.158815 

3.700018 

17 

18 

2.406619 

2.854339 

3.373932 

3.996019 

18 

19 

2.526950 

3.025599 

3.616527 

4.315701 

19 

20 

2.653298 

3.207135 

3.869684 

4.660957 

20 

9  per  cent. 

10  per  cent. 

11  per  cent. 

12  per  cent. 

1 

1.090000 

1.100000 

1.110000 

1.120000 

1 

2 

1.188100 

1.210000 

1.232100 

1.254400 

2 

3 

1.295029 

1.33100C 

1.367631 

1.404908 

3 

4 

1.411582 

1.464100 

1.51807C 

1.573519 

4 

5 

1.538624 

1.610510 

1.685058 

1.762342 

5 

6 

1.677100 

1.771561 

1.870414 

1.973822 

6 

7 

1.828039 

1.948717 

2.076160 

2.210681 

7 

8 

1.992563 

2.143589 

2.304537 

2.475963 

8  1 

9 

2.171893 

2.357948 

2.558036 

2.773078 

9 

10 

2.367364 

2.593742 

2.839420 

3.105848 

10  I 

11 

2.580426 

2.853117 

3.151757 

3.478549 

11 

12 

2.812665 

3.138428 

3.498450 

3.895975 

12 

13 

3.065805 

3.452271 

3.883279 

4.363492 

13 

14 

3.341727 

3.797498 

4.310440 

4.887111 

14 

15 

3.642482 

4.177248 

4.784588 

5.473565 

15 

16 

3.970306 

4.594973 

5.310893 

6.130392 

16 

17 

4.327633 

5.054470 

6.895091 

6.866040 

17 

18 

4.717120 

5.559917 

6.543551 

7.0S9964 

18 

19 

5.141661 

6.115909 

7.263342 

8.612760 

19 

20 

5.604411 

6.727500 

8.062309 

9.646291 

20 

COMPOUND    INTEREST.  209 

363.  To  find  the  amount  of  any  sum  by  the  tables.  Multi 
ply  the  amount  of  $1  for  the  given  rate  and  time  by  the  given 
principal. 

Example. — What  will  be  the  amount  of  $500  for  10  years, 
at  6%  compound  interest? 

Amount  of  $1  for  10  years  at  6%  =  1.790848 

500 

Amount  of  $500  =  $895.424000 
$895.42  — $500  =  $395.42,  the  compound  interest. 

364:.  When  the  time  extends  beyond  the  limits  of  the  table, 
find  the  amount  for  a  convenient  length  of  time,  and  use  this 
amount  for  a  new  principal  for  the  remainder  of  the  time. 

Example. — $1.790848,  amount  for  10  years,  at  6%,  mul- 
tiplied by  1.338226,  amount  for  5  years,  equals  $2.396558, 
amount  for  15  years. 

365.  When  the  intervals  are  less  than  a  year,  find  how 
many  such  intervals  occur  in  1  year,  and  divide  the  given 
rate  by  the  number  of  intervals  thus  found;  then  under  the 
rate  shown  by  the  quotient,  and  opposite  the  h.  amber  show- 
ing the  total  number  of  intervals,  will  be  found  the  amount. 

Examples. — 1.  The  amount  of  $800  for  3  years  at  6  per 
cent,  compound  interest,  payable  semi-annually,  is  the  same 
as  the  amount  of  $800  at  3  per  cent,  for  6  years,  payable 
annually.  If  the  interest  was  payable  quarterly,  it  would  be 
the  same  as  the  amount  of  $800  for  12  years  at  1^  per  cent.; 
if  payable  monthly,  the  same  as  for  36  years  at  $  per  cent. 

2.  What  is  the  compound  interest  of  $950  for  3  years,  6 
months,  at  12%,  payable  semi-annually? 

3.  What  is  the  compound  interest  of  $4600  for  2  years, 
interest  payable  quarterly,  at  6  %  per  annum  ? 

366.  Compound  Interest,  and  also  the  Compound  Amount, 
vary  in  proportion  to  the  principal. 

367.  To  find  the  principal  or  present  worth  at  compound 
interest,  the  amount,  time,  and  rate  per  cent,  being  given 

Rule. — Divide  the  given  amount  by  the  compound  amount 
of  $1  for  the  given  time  and  rate. 
O  18* 


210  COMPOUND    INTEREST. 

Example. — What  is  the  present  worth  of  $30fc  26,  due  3 
years  hence,  at  7  %  compound  interest  ? 

Amount  of  $1  for  3  years  at  7  %,    $1.225043. 
$306.26  -*-  1.225043  ==  $250.  Ans.  $250. 

368.  To  find  the  principal  or  present  worth,  the  compound 
interest,  the  time,  and  the  rate  per  cent,  being  given. 

Rule. — Divide  the  given  interest  by  the  compound  interest 
on  $1  for  the  given  time  and  rate. 

Example.  —  What  principal  at  7%    compound  interest 
will  produce  $351.81  in  15  years? 
Compound  interest  of  $1  for  15  years  at  7%  =  $1.759031. 
$351.81  -=-1.759031  =  $200.  Ans.  $200. 

369.  To  find  the  time  or  rate,  when  the  other  quantities 
are  given. 

Rule. — Divide  the  amount  by  the  principal,  and  look  for 
the  quotient  in  the  Table,  under  the  given  rate,  or  opposite  the 
given  time. 

370.  To  compute  compound  interest  by  the  use  of  loga- 
rithms. 

Rule. — Find  the  logarithm  of  the  amount  of  $100  for  1 
year  or  the  time  specified,  and  reject  2  in  the  index. 

Then  multiply  it  by  the  given  number  of  years  or  time  spe- 
cified, and  to  the  product  add  the  logarithm  of  the  principal ; 
their  sum  will  be  the  logarithm  of  the  amount. 

EXAMPLE. 

What  is  the  compound  interest  of  $340  for  7  years  at  6  <f0  1 
Logarithm  of  $106,  rejecting  2  in  the  index,  0.02531 
Number  of  years,  7 

.17717 
Add  logarithm  of  $340,  2.53148 

Logarithm  of  the  amount,  2  70865  • 
This  logarithm  gives,      $511.23 
Deducting  the  principal,  340.00 

Compound  interest  of  $340  for  7  years,  $171.23 


ANNUITIES.  211 


ANNUITIES. 

371.  An  Annuity  is  a  yearly  income  or  sirai  of  money 
to  be  paid  regularly  at  stated  periods. 

372.  A  Perpetual  Annuity  is  one  that  is  unlimited  in 
duration,  or  which  can  be  terminated  by  the  grantor  only  on 
the  payment  of  a  sum  whose  interest  will  equal  the  annuity. 

373.  An  Annuity  Certain,  or  Terminable  Annuity, 
begins  and  ends  at  a  fixed  time. 

374.  A  Contingent  Annuity  depends  upon  some  par- 
ticular circumstance,  as  the  life  of  one  or  more  individuals. 
Life  Insurance,  Dowers,  and  Pensions  are  of  this  kind. 

375.  A  Deferred  Annuity,  or  Annuity  in  Rever- 
sion, is  one  that  begins  at  some  future  time. 

376.  An  Annuity  forborne  or  in  Arrears  is  one  on 
which  the  payments  remain  unpaid  after  becoming  due. 

377.  The  Amount  or  Final  Value  of  an  annuity  at 
compound  interest  is  the  sum  to  which  all  its  payments  at 
compound  interest  will  amount  at  the  end  of  the  annuity. 

378.  The  Present  Value  of  an  annuity  is  the  sum 
which  at  interest  would  amount  to  its  final  value. 


ANNUITIES   AT   SIMPLE   INTEREST. 

379.  To  find  the  final  value  of  an  annuity  at  Simple  In- 
terest. 

Rule. — Multiply  the  interest  on  the  annuity  for  1  year  by 
the  number  of  years  less  1,  and  this  product  by  one-half  the 
number  of  years  ;  then 

Add  the  product  of  the  annuity  multiplied  by  the  number 
of  years. 


212  ANNUITIES. 

EXAMPLES. 

1.  What  will  be  the  amount  or  final  value  of  an  annuity 
of  $150  for  8  years  at  6  %  ? 

Interest  on  $150  for  1  year  =  $9. 
9  X  7  =  63.  63X4=   252 

150  X  8  =  1200 

Ans.  $1452 

2.  The  rent  of  a  house,  which  is  $300  per  year,  has  re- 
mained unpaid  for  5  years.  What  amount  is  now  due,  allowing 
interest  at  7  %  ?  Ans.  $1710. 

380.  To  find  the  present  value  of  an  annuity  at  Simple 
Interest. 

Rule. — Find  the  final  value  of  the  annuity,  and  then  find 
the  present  value  of  that  amount. 

EXAMPLE. 

1.  What  is  the  present  value  of  the  annuity  mentioned  in 
the  first  example  under  the  preceding  rule  ? 

Final  value,  $1452.  Present  worth  of  $1452  for  8  years 
at  6  %  =  $981.08. 

ANNUITIES   AT   COMPOUND   INTEREST. 

The  amount  of  an  annuity  of  $1 ,  at  6  %  Compound  In- 
terest, ior  1  year  =  $1.060000. 

2  yrs.  =$1.123600. 

3  «    =$1.191016. 

The  final  value  of  an  annuity  of  $1  for 

2  years.  3  years.  4  years. 

$1.00  $1.0000  $1.000000 

1.06  1.0600  1.060000 

a77^  1.1236  1.123600 

Final  value  for  3  years,  $3.1836  l.muib 

Final  value  for  4  years,  $4.374616 

The  final  value  of  $300  for  4  years  =  $4.37461 6  X  300, 
=  $1312.3848. 


ANNUITIES.  213 

381.  To  find  the  final  value  of  an  annuity. 

Rule. — Multiply  the  amount  of  flt  as  given  in  Table  I, 
by  the  annuity :  the  product  will  be  the  final  value. 

382.  The  final  value  may  also  be  found  by  obtaining  the 
principal  required  to  produce  an  amount  of  interest  equal  to 
the  annuity,  and  then  multiplying  this  principal  by  the  com- 
pound amount  of  $1  for  the  given  rate  and  time. 

383.  To  find  the  present  value  of  an  annuity. 

Rule. — Divide  the  amount  or  final  value  of  the  annuity 
by  the  amount  of  $1  at  compound  interest.     Or, 

Multiply  the  present  worth  of  $1,  as  given  in  Table  II.,  by 
the  given  annuity. 

Example. — Find  the  present  worth  of  an  annuity  of  $1 
for  3  years  at  6%. 

The  final  value  of  $1  for  3  years  ==  $3.1836.  Then,  by  Art. 
368,  Compound  Interest,  the  present  value  of  an  annuity  of 
$1  for  3  years  =  $3.1836-=-1.191016  =  $2.673012. 

The  present  value  of  $500,  at  the  same  rate,  for  the  same 
time,  would  be  $2.673012  X  500  =  $1336.506. 

384.  To  find  the  present  value  of  an  annuity  in  reversion. 

Rule. — Find  the  present  value  of  an  annuity  of  $1  to 
the  time  the  annuity  commences,  and  also  to  the  time  it  termi- 
nates; then  multiply  the  difference  between  these  present  values 
by  the  given  annuity.     Or, 

Find  the  present  worth  of  the  final  value  of  the  annuity 
from  the  present  time  to  the  time  it  terminates. 

Example. — A  father  leaves  an  income  of  $500  per  year  to 
his  son,  to  commence  in  5  years  and  to  continue  for  10  years. 
What  is  the  present  worth  of  the  legacy,  at  6  per  cent.  ? 

By  Table  II.,  present  worth  of  $1  for  15  years,  $9.712249 
"  "      "    $1    "     5     "    '     4.212364 

$5^99885 
$5.499885  X  500  =  $2749.94,  Ans. 


214 


ANNUITIES. 


TABLE  I. 


Showing  the  FINAL  value  of  an  Annuity  of  One  Dollar  p^r  annum, 
Compound  Interest,  from  1  year  to  40,  inclusive. 


00 

3  per  cent. 

3%  per  cent. 

4  per  cent. 

5  per  cent. 

6  per  cent. 

7  per  cent. 

1 

1.000  000 

1.000  000 

1.000  000 

1.000  000 

1.000  000 

1.000  000 

2 

2.030  000 

2.035  000 

2.040  000 

2.050  000 

2.060  000 

2.070  000 

3 

3.090  900 

3.106  225 

3.121  600 

3.152  500 

•  3.183  600 

3.214  900 

4 

4.183  627 

4.214  943 

4.246  464 

4.310  125 

4.374  618 

4.439  943 

5 

5.309  136 

5.362  466 

5.416  323 

5.525  631 

5.637  093 

5.750  739 

6 

6.468  410 

6.550  152 

6.632  975 

6.801  913 

6.975  319 

7.153  291 

7 

7.662  462 

7.779  408 

7.898  294 

8.142  008 

8.393  S38 

8.654  021 

8 

8.892  336 

9.051  687 

9.214  226 

9.549  109 

9.S97  468 

10.259  803 

9 

10.159  106 

10.368  496 

10.582  795 

11.026  564 

11.491  316 

11.977  989 

10 

11.463  879 

11.731  393 

12.006  107 

12.577  893 

13.180  795 

13.816  448 

11 

12.807  796 

13.141  992 

13.486  351 

14.206  787 

14.971  643 

15.783  599 

12 

14.192  030 

14.601  962 

15.025  805 

15.917  127 

16.869  941 

17.888  451 

13 

15.617  790 

16.113  030 

16.626  838 

17.712  983 

18.882  138 

20.140  643 

14 

17.086  324 

17.676  986 

18.291  911 

19.598  632 

2L015  066 

22.550  488 

15 

18.598  914 

19.295  681 

20.023  588 

21.578  564 

23.275  970 

25.129  022 

16 

20.156  881 

20.971  030 

21.824  531 

23.657  492 

25.670  528 

27.888  054 

17 

21.761  588 

22.705  016 

23.697  512 

25.840  366 

28.212  880 

30.840  217 

18 

23.414  435 

24.499  691 

25.645  413 

28.132  385 

30.905  653 

33.999  033 

19 

25.116  868 

26.357  180 

27.671  229 

30.539  004 

33.759  992 

37.378  965 

20 

26.870  374 

28.279  682 

29.778  079 

33.066  954 

36.785  591 

40.995  492 

21 

28.676  486 

30.269  471 

31.969  202 

35.719  252 

39.992  727 

44.865  177 

22 

30.536  780 

32.328  902 

34.247  970 

38.505  214 

43.392  290 

49.005  739 

23 

32.452  884 

34.460  414 

36.617  8S9 

41.430  475 

46.995  828 

53.436  141 

24 

34.426  470 

36.666  528 

39.082  604 

44.501  999 

50.815  577 

58.176  671 

25 

36.459  264 

38.949  857 

41.645  908 

47.727  099 

54.864  512 

63.249  030 

26 

38.553  042 

41.313  102 

44.311  745 

51.113  454 

59.156  383 

68.676  470 

27 

40.709  634 

42.759  060 

47.084  214 

54.669  126 

63.705  766 

74.483  823 

28 

42.930  923 

46.290  627 

49.967  583 

58.402  583 

68.528  112 

80.697  691 

29 

45.218  850 

48.910  799 

52.966  286 

62.322  712 

73.639  798 

87.346  529 

30 

47.575  416 

51.622  677 

56.084  938 

66.438  848 

79.058  186 

94.460  786  j 

31 

50.002  678 

54.429  471 

59.328  335 

70.760  790 

84.801  677 

102.073  041 

32 

62.502  759 

57.334  502 

62.701  469 

75.298  829 

00.S99  778 

110.218  154 

33 

55.077  841 

60.341  210 

66.209  527 

80.063  771 

97.343  165 

118.933  425 

34 

57.730  177 

63.453  152 

69.857  909 

85.066  959 

104.183  755 

128.258  765 

35 

60.462  082 

66.674  013 

73.652  225 

90.320  307 

111.434  780 

138.236  878 

|  36 

63.271  944 

70.007  603 

77.598  314 

95.836  323 

119.120  867 

148.913  460 

/  37 

38 
1  39 

66.174  223 

73.457  869 

81.702  246 

101.628  139 

127.268  119 

160.337  400 

69.159  449 

77.028  895 

85.970  336 

107.709  546 

135.904  206 

172.561  020 

72.234  233 

80.724  906 

90.409  150 

114.095  023 

145.058  458 

185.640  292 

L40 

75.401  260 

84.560  278 

95.025  516 

120.799  774 

154.761  966 

199.635  112 

ANNUITIES. 


215 


TABLE  II. 


SJiowing  the  present  worth  of  an  Annuity  of  0  it  Dollar  per 
annum,  at  Compound  Interest,  from  1  year  to  fyG  inclusive. 


m 
as 
►*» 

1 

3  per  cent. 

3%  per  cent. 

4  per  cent. 

5  per  cent. 

6 per  cent. 

7  per  cent. 

09 

M 

N 

0.970  874 

0.966  184 

0.961  538 

0.952  381 

0.943  396 

0.934  579 

1 

2 

1.913  470 

1.899  694 

1.886  095 

1.859  '410 

1.833  393 

1.808  017 

2 

3 

2.828  611 

2.801  637 

2.775  091 

2.723  248 

2.673  012 

2.624  314 

3 

4 

3.717  098 

3.673  079 

3.629  895 

3.545  951 

3.465  106 

3.387  209 

4 

5 

4.579  707 

4.515  052 

4.451  822 

4.329  477 

4.212  364 

4.100  195 

5 

6 

5.417  191 

5.328  553 

5.242  137 

5.075  692 

4.917  324 

4.766  537 

6 

7 

6.230  283 

6.114  544 

6.002  055 

5.786  373 

5.582  381 

5.389  286 

7 

8 

7.019  692 

6.873  956 

6.732  745 

6.463  213 

6.209  744 

5.971  295 

8 

9 

7.786  109 

7.607  687 

7.435  332 

7.107  822 

6.801  692 

6.516  228 

9 

10 

8.530  203 

8.316  605 

8.110  896 

7.721  735 

7.360  087 

7.023  577 

10 

11 

9.252  624 

9.001  551 

8.760  477 

8.306  414 

7.886  875 

7.498  669 

11 

12 

9.954  004 

9.663  334 

9.385  074 

8.863  252 

8.383  844 

7.942  671 

12 

13 

10.634  955 

10.302  738 

9.985  648 

9.393  573 

8.852  683 

8.357  635 

13 

14 

11.296  073 

10.920  520 

10.563  123 

9.898  641 

9.294  984 

8.745  452 

14 

15 

11.937  935 

11.517  411 

11.118  387 

10.379  658 

9.712  249 

9.107  898 

15 

16 

12.561  102 

12.094  117 

11.652  296 

10.837  770 

10.105  895 

9.446  632 

16 

17 

13.166  118 

12.651  321 

12.165  669 

11.274  066 

10.477  260 

9.763  206 

17 

18 

13.753  513 

13.189  682 

12.659  297 

11.689  587 

10.827  603 

10.059  070 

18 

19 

14.323  799 

13.709  837 

13.133  939 

12.085  321 

11.158  116 

10.335  578 

19 

20 

14.877  475 

14.212  403 

13.590  326 

12.462  210 

11.469  421 

10.593  997 

20 

21 

15.415  024 

14.697  974 

14.029  160 

12.821  153 

11.764  077 

10.835  527 

21 

22 

15.936  917 

15.167  125 

14.451  115 

13.163  003 

12.041  582 

11.061  241 

22 

23 

16.443  608 

15.620  410 

14.856  842 

13.488  574 

12.303  379 

11.272  187 

23 

24 

16.935  542 

16.058  368 

15.246  963 

13.798  642 

12.550  358 

11.469  334 

24 

25 

17.413  148 

16.481  515 

15  022  080 

14.093  945 

12.783  356 

11.653  583 

26 

26 

17.876  842 

16.890  352 

15.982  769 

14.275  185 

13.003  166 

11.825  779 

26 

27 

18.327  031 

17.285  365 

16.329  586 

14.643  034 

13  210  534 

11.986  709 

27 

28 

18.764  108 

17.667  019 

16.663  063 

14.898  127 

13.406  164 

12.137  111 

28 

29 

19.188  455 

18.035  767 

16.9S3  715 

15.141  074 

13.590  721 

12.277  674 

29 

30 

19.600  441 

18.392  045 

17.292  033 

15.372  451 

13.764  831 

12.409  041 

30 

31 

20.000  428 

18.736  276 

17.588  494 

15.592  811 

13.929  OSE 

12.531  814 

31 

32 

20.338  766 

19.068  865 

17.873  552 

15.802  677 

14.0S4  043 

12.646  555 

32 

33 

20.765  792 

19.390  208 

18.147  640 

16.002  549 

14.230  230 

12.753  790 

33 

84 

21.131  837 

19.700  684 

18.411  198 

16.192  204 

14.368  141 

12.854  009 

34 

35 

21.487  220 

•20.000  661 

18.664  613 

16.374  1»4 

14.498  246 

12.947  672 

35 

36 

21.832  252 

20.290  494 

18.908  282 

16.546  852 

14.620  987 

13.035  208 

36 

37 

22.167  235 

20.570  525 

19.142  579 

16.711  287 

14.736  780 

13.117  017 

37 

38 

22.492  462 

20.841  0S7 

19.367  864 

16.867  893 

14.846  019 

13.193  473 

38 

39 

22.808  215 

21.102  500 

19.584  485 

17.017  041 

14.949  075 

13.264  928 

39 

40 

1 

23.114  772 

21.355  072 

19.792  774 

17.159  086 

15.046  297 

13.331  709 

40 

216  ANNUITIES. 

385.  To  find  the  present  worth  of  an  annaity  in  per- 
petuity. 

This  is  equivalent  to  finding  a  principal  the  interest  of  which  is  equal 
to  the  given  annuity. 

Rule. — Annex  two  ciphers  to  the  annuity,  and  divide  by 
the  rate. 

Example. — The  annual  income  from  an  estate  is  $250. 
What  is  the  present  worth  of  the  estate,  allowing  compound 
interest,  at  6  per  cent.  ?  Ans. 

386.  To  find  an  annuity  from  its  present  value. 

Rule. — Divide  its  present  value  by  the  present  value  of  an 
annuity  of  $1  for  the  given  rate  and  time. 

Example. — The  present  value  of  an  annuity  for  10  years, 
at  5  per  cent,  compound  interest,  is  $3000.  What  is  the 
annuity?  Ans.  $388,513. 

387.  To  find  an  annuity  from  its  amount. 

Rule.— Divide  the  given  amount  by  the  final  value  of  $1 
for  the  given  time  and  rate. 

Example. — The  final  value  of  an  annuity  for  11  years,  at 
7  per  cent,  compound  interest,  amounts  to  $4735.08.  What 
is  the  annuity  ?  Ans.  $300. 

MISCELLANEOUS   EXAMPLES. 

1.  What  sum  of  money  must  a  man  invest  annually  at  6 
per  cent,  compound  interest,  that  he  may  have  $5000  at  the 
end  of  10  years? 

2.  What  is  the  present  worth  of  $500  to  be  received  annu- 
ally for  6  years,  allowing  compound  interest  at  7  per  cent.  ? 

3.  What  sum  invested  at  6  per  cent,  compound  interest 
will  yield  an  income  of  $1800  per  annum  for  12  years? 

4.  The  executors  of  an  estate  offer  for  sale  an  unoccupied 
lease  that  has  6  years  to  run,  for  a  premium  of  $300.  How 
much,  added  to  the  annual  rent,  will  amount  to  the  same  sum  ? 

5.  What  is  an  interest  of  $250  annually  in  an  estate  for 
10  years  worth,  allowing  money  to  be  worth  7  per  cent,  com- 
pound interest? 


BUILDING   AND   LOAN    ASSOCIATIONS.  217 


BUILDING  AND   LOAN   ASSOCIATIONS. 

388.  Building  and  Loan  Associations  have  for  their 
object  the  accumulation  of  a  fund  from  which  the  members 
can  obtain  the  means  to  build  or  buy  houses,  purchase  lands, 
or  for  similar  purposes. 

The  shares  are  usually  estimated  at  $200  each,  and  are  paid 
for  in  monthly  instalments,  generally  $1  per  month  for  each 
*share.  When  the  accumulated  payments  reach  a  certain  sum, 
the  funds  are  offered  at  auction,  and  given  to  the  shareholder 
paying  the  largest  bonus  or  discount.  Interest  on  the  loan  thus 
made  is  paid  monthly,  or  at  the  same  time  as  the  periodical 
dues.  The  loans  are  generally  secured  by  mortgage  on  real 
estate.  To  prevent  delinquency,  fines  are  imposed  of  5  or  10 
per  cent,  per  month  on  all  sums  not  paid  when  due.  When 
the  total  amount  received  by  the  association  is  sufficient  to 
give  each  shareholder  the  amount  originally  agreed  upon,  the 
association  closes. 

As  promotive  of  habits  of  economy,  and  as  affording  means 
of  profitable  investment,  these  associations  have  been  highly 
successful.  The  chief  benefit,  however,  is  derived  from  the 
increase  in  the  value  of  the  property  purchased,  and  in  the 
convenient  form  in  which  the  payments  are  made.  Practi- 
cally, these  associations  have  given  homes  to  hundreds  who 
would  otherwise  never  have  owned  them. 

389.  To  find  the  cost  of  a  share  at  simple  interest,  when 
the  monthly  dues,  time,  and  rate  of  interest  are  given. 

Rule. — Multiply  the  interest  on  the  monthly  payment  for 
one  month  by  the  number  of  months,  less  1,  that  the  associa- 
tion continues,  and  this  product  by  one-half  the  number  of 
months  the  association  continues.     Then 

Add  the  product  of  the  monthly  payment  by  the  total 
number  of  months. 

19 


218  BUILDING    AND    LOAN   ASS.CIATIONS. 

EXAMPLE. 

What  was  the  cost  of  a  share  for  which  SI  per  month  had 
been  paid  for  9  years,  allowing  6%  simple  interest? 

Interest  on  SI  for  1  month,         .005.     108  —  1  =  107 
Number  of  months  in  9  years  =  108.     108  ~-  2  =    54 
107  X  -005  =  .535.     .535  X    54  =    28.890 
$1.  X  108=108.000 

Total  cost,  allowing  6  per  cent,  interest,  $136,890 

390.  To  find  the  cost  of  a  share  at  compound  interest. 
Rule. — Divide  the  monthly  payment,  after  annexing  two 

ciphers,  by  the  given  rate  of  interest,  and  find  the  compound 
interest  of  the  quotient  for  the  given  rate  and  time. 

391.  To  find  the  cost  of  a  loan  at  simple  interest. 
Rule. — Add  the  present  value  of  a  share  to  the  present 

value  of  the  payment  required  for  the  loan. 

As  it  is  impossible  before  the  association  closes,  owing  to 
the  variations  of  discounts,  number  of  borrowers,  etc.,  to  know 
the  exact  time  the  association  will  continue,  an  approximate 
value  is  all  that  can  be  found.  From  eight  to  ten  years  is 
the  usual  time. 

EXAMPLES. 

1.  What  is  the  cost  of  a  loan  of  $200,  the  association  re- 
quiring $1  interest  in  addition  to  $1  as  regular  payment  to 
be  paid  monthly  for  6  years,  the  present  value  of  a  share 
being  $50  ? 

Interest  on  $2  for  1  month  =  .01. 
6  years  =  72  months.     .01  X  71  r=    71/. 
71  X36=  $25.56 
$2  X  72  =  144.00 

Value  of  payments  to  be  made,  $169.56 

Present  worth  of  payments  for  6  years,  $124.68 
Value  of  share,  50 

Cost  of  loan,         $174.68  Ans. 
A  bonus  of  10%  on  $200  would  leave  $180.     A  bonua 
of  20%  would  leave  $160. 

2.  .Which  would  be  preferable,  the  above  loan  and  pay- 
ments, or  to  borrow  $180  at  6  %  compound  interest? 


BUILDING    AND    LOAN   ASSOCIATIONS. 


219 


392.  To  find  the  rate  of  interest  paid  for  a  loan. 

Rule. — From  the  cost  of  the  loan  subtract  the  amount 
received;  then, 

Find  the  rate  it  will  require  for  the  loan  to  ga in  this  dif- 
ference in  the  given  number  of  years. 

393.  To  find  the  amount  of  fines  on  dues  remaining 
unpaid. 

Note. — The  total  amount  of  fines  is  equivalent  to  the  sum  of  the  com- 
pound interest  of  the  dues  for  as  many  months  as  each  payment  remains 
unpaid ;  or  to  the  final  value  of  an  annuity  for  the  same  time,  with  in- 
terest at  the  rate  of  the  fine. 

Rule. — Multiply  the  compound  interest  of  $1,  at  the  rate 
of  the  given  fine,  by  the  dues  for  one  month,  commencing  with 
the  interest  of  one  month,  and  continuing  for  the  whole  num- 
ber of  months.  The  sum  of  all  the  products  will  be  the  total 
amount  of  fines*     Or,  by  Annuity  Tables, 

From  the  final  value  of  an  annuity  of  $1  for  one  more  year 
than  the  number  of  months  that  the  dues  remain  unpaid,  sub- 
tract one  more  dollar  than  there  are  such  months;  the  remainder 
will  be  the  fines  on  dues  of  $1  per  month.  This  multiplied  by 
the  total  dues  per  month,  will  give  the  total  fines.     Or, 

Multiply  the  sum  of  the  fines  on  $1,  as  given  below,  by  the 
dues  for  1  month. 

EXAMPLE. 

How  much  must  a  man,  whose  dues  are  $5  per  month,  pay 
for  fines  at  5%  per  month,  on  all  sums  remaining  unpaid, 
after  his  dues  remain  unpaid  6  months  ? 


By  Compound  Interest. 


The  interest  on  $1,  at  5  per  cent., 
on  $5,  = 


.25 

.51 

.79 

1.08 

1.38 

1.70 


$1.142009 
Total  fines  for  6  mos.,  at  5  per  ct.,  \  *k  -, 
on  unpaid  dues  of  $5  per  mo.,  J 


For  1  month, 

=  .05000, 

«    2      " 

=  .102500, 

"3      " 

=  .157625, 

"    4      " 

=  .215506, 

M     5         « 

=  .276282, 

m    6      » 

=  .340096, 

Fines  on  dues  of  $1  per  month,  remain- 
ing unpaid  for  6  months,  at  10  per  cent. 
per  month. 

For  1  month,  on  $1,    = 
"    2 


.10 
.21 
23 


"  4 
"  5 
"    6 

Total  fines  for  6  months,  1 
at  10  per  cent.,  j 


.61 

.77 

$2.48 


220  LIFE   INSURANCE. 


LIFE    INSURANCE. 

394.  Life  Insurance  companies  base  their  premiums 
upon  tbe  number  of  years  each  person  is  expected  to  live  after 
insuring,  and  the  use  of  money  for  that  time. 

395.  The  expectation  of  life  is  the  average  number  of 
years  remaining  to  a  person  at  a  given  age,  and  is  deduced  from 
tables  of  mortality,  which  have  been  prepared  from  various  ob- 

.servations  made  in  different  places  and  periods,  showing,  out 
of  a  given  number  of  persons,  how  many  complete  each  subse- 
quent year,  and  how  many  die  in  it,  till  the  whole  are  extinct. 
The  Carlisle  tables,  formed  by  Mr.  Milne  according  to  the 
mortality  observed  at  Carlisle  (Eng.),  the  Northampton  tables, 
formed  by  Dr.  Price  (Eng.),  the  Wigglesworth  tables,  pre- 
pared by  Dr.  Wigglesworth  from  data  founded  upon  the  mor- 
tality of  this  country,  and  others,  are  employed.  The  Carlisle 
tables  are  in  general  use  in  England,  and  to  a  considerable  ex- 
tent here.  The  Wigglesworth  tables  have  been  adopted  by  the 
Supreme  Court  of  Massachusetts  in  estimating  life  estates :  they 
show  a  smaller  expectation  of  life  than  the  Carlisle  tables. 

396.  The  probability  that  a  person  of  any  designated 
age  will  attain  any  greater  age  is  expressed  by  dividing  tho 
number  of  survivors  at  the  greater  age  by  the  number  that 
attain  the  given  age.  Thus,  by  the  Carlisle  tables,  of  10,000 
persons  born  together,  5642  attain  to  30,  and  2894  to  66 
years  of  age.  The  probability  that  a  person  now  30  years 
will  reach  the  age  of  66  years  is,  therefore,  §§f if, — about  J, 
or  1  chance  in  2.  The  value  of  a  sum  of  money,  the  receipt 
of  which  depends  upon  the  person  being  alive  at  that  time, 
will  be  reduced  by  that  contingency  one-half;  so  that  if  the 
sum  to  be  received  is  $1000,  its  value  is  reduced  to  only  $500. 
The  present  worth  of  $1000,  due  36  years  hence,  interest  at 
6  per  cent.,  is  $122.74 ;  but,  depending  upon  the  same  con- 
tingency, it  is  worth  only  $61.37. 


LIFE    INSURANCE. 


221 


TABLE 

Of  Mortality  base. I  upon  observations  at  Carlisle  {Eng.),  showing 
the  rate  of  extinction  of  lO.fiOO  lives. 


"4 

3  3 
feOQ 

o  . 

gj 

■i! 

4 

to 

< 

O  co 

IS 

o  . 

S  1 

O  oo 
u   S 

If 

3  3 

E  I 

0 

10000 

1539 

35 

5362 

55 

70 

2401 

124 

1 

8461 

682 

36 

5307 

56 

71 

2277 

134 

2 

7779 

505 

37 

5251 

57 

72 

2143 

146 

3 

7274 

276 

38 

5194 

58 

73 

1997 

156 

4 

6998 

201 

39 

5136 

62 

74 

1841 

166 

5 

6797 

121 

40 

5075 

66 

75 

1675 

160 

6 

6676 

82 

41 

5009 

69 

76 

1515 

156 

7 

6594 

58 

42 

4940 

71 

77 

1359 

146 

8 

6536 

43 

43 

4869 

71 

78 

1213 

132 

9 

6493 

33 

44 

4798 

71 

79 

1081 

128 

10 

6460 

29 

45 

4727 

70 

80 

953 

116 

11 

6431 

31 

46 

4657 

69 

81 

837 

112 

12 

6400 

32 

47 

4588 

67 

82 

725 

102 

13 

6368 

33 

48 

4521 

63 

83 

623 

94 

14 

6335 

35 

49 

4458 

61 

84 

529 

84 

15 

6300 

39 

50 

4397 

59 

85 

445 

78 

16 

6261 

42 

51 

4338 

62 

86 

367 

71 

17 

6219 

43 

52 

4276 

65 

87 

296 

64 

18 

6176 

43 

53 

4211 

68 

88 

232 

51 

19 

6133 

43 

54 

4143 

70 

89 

181 

39 

20 

6090 

43 

55 

4073 

73 

90 

142 

37 

21 

6047 

42 

56 

4000 

76 

91 

105 

30 

22 

6005 

42 

57 

3924 

82 

92 

75 

21 

23 

5963 

42 

58 

3842 

93 

93 

54 

14 

24 

5921 

42 

59 

3749 

106 

94 

40 

10 

25 

5879 

43 

60 

3643 

122 

95 

30 

7 

26 

5836 

43 

61 

3521 

126 

96 

23 

5 

27 

5793 

45 

62 

3395 

127 

97 

18 

4 

28 

5748 

50 

63 

3268 

125 

98 

14 

3 

29 

5698 

56 

64 

3143 

125 

99 

11 

2 

30 

5642 

57 

65 

3018 

124 

100 

9 

2 

81 

5585 

57 

66 

2894 

123 

101 

7 

2 

32 

5528 

56 

67 

2771 

123 

102 

5 

2 

33 

5472 

55 

68 

2648 

123 

103 

3 

2 

34 

5417 

55 

69 

2525 

124 

104 

1 

1 

19* 


222  LIFE    INSURANCE. 

397.  The  expectation  of  life  may  be  obtained  by  finding 
the  sum  of  the  probabilities  that  the  person  will  live  to  the 
extreme  limit  of  life,  plus  J.  The  \  is  added  on  the  supposi- 
tion that,  on  an  average/ the  life  will  fail  at  the  middle  of  the 
year.  Thus,  by  the  table,  the  probability  that  a  person  at 
102  will  live  one  year  is  §,  that  he  will  live  2  years  is  i : 

f  "4*  J  -f"  i  =  t§  i=  i-^  years-  I*  mav  a^so  De  found  by 
dividing  the  aggregate  number  of  years  which  the  persons 
who  are  alive  at  one  time  will  live,  by  the  number  of  per- 
sons. A  short  rule,  which  gives  approximate  results,  is  to 
take  |  of  the  number  of  years  between  the  person's  present 
age  and  80.  Thus,  a  person  at  20  has  an  expectation  of  40 
years;  at  50,  of  20  years. 

The  value  of  the  probabilities  and  expectation  of  life  under 
various  circumstances  is  calculated  by  actuaries,  and  involves 
complications  too  extensive  for  an  elementary  work.  From 
these  calculations,  tables  are  arranged,  showing  the  rates  at 
which  companies  will  insure  lives, — such  rates  including  all 
probable  losses,  expenses,  interest,  and  profits. 

To  all  who  have  limited  incomes,  Life  Insurance  offers  a 
provision  against  the  accidents  of  life.  By  paying  a  small 
sum  annually,  a  person  at  his  death  may  leave  his  family — 
which  would  otherwise  be  dependent,  either  from  lack  of  pro- 
perty, or  from  having  heavily  encumbered  property — in  com- 
fortable circumstances. 

By  a  Joint  Policy,  two  persons  may  insure  and  the  sum 
insured  is  paid  to  the  other  on  the  death  of  either.  By  the 
Endowment  Policy,  the  amount  can  be  made  payable  to  the 
person  insured  at  a  stated  time, — thus  making  provision 
against  old  age.  A  Life  Insurance  policy  has  enabled  per- 
sons of  unquestionable  character  and  business  ability,  who 
nave  otherwise  been  unable  to  borrow  on  account  of  advanced 
age  and  the  uncertainty  of  life,  to  obtain  capital  with  which 
to  conduct  a  profitable  business. 


VALUE    OF    LIFE    INTERESTS. 


223 


VALUE  OP  LIFE  INTERESTS,  WIDOWS'  DOWERS,  ANNUITIES,  &o. 

Extract  from  Instructions  issued  by  the  Treasury  Department,  Washington,  February 
15,  1S66. 

"Where  legacies  are  made  payable  at  the  expiration  of  a  life  or  lives  in  being,  the 
value  of  the  legacy  will  be  estimated  by  the  Carlisle  tables  of  life  annuities,  which 
are  appended  to  tbese  instructions. 

"  Where  a  legacy  is  made  payable  on  a  future  contingency,  the  value  of  the  legacy 
is  to  be  estimated  by  a  consideration  of  the  time,  certain  or  ascertainable  by  the  an- 
nuity tables,  when  the  legacy  will  become  vested. 

CARLISLE  TABLES. 


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45 

24.46 

12.6576 

.240548 

5 

51.25 

15.8252 

.050490 

46 

23.82 

12.5059 

.249646 

6 

51.17 

15.8213 

.050722 

47 

23.17 

12.3454 

.259278 

7 

50.S0 

15.8029 

.051830 

48 

22.51 

12.1751 

.269494 

8 

50.24 

15.7742 

.053551 

49 

21.81 

11.9889 

.280669 

9 

49.57 

15.7385 

.055689 

50 

21.11 

11.7946 

.292324 

10 

48.82 

15.6972 

.058168 

51 

20.39 

11.5846 

.304922 

11 

48.04 

15.6523 

.060860 

52 

19.68 

11.3701 

.317792 

12 

47.27 

15.6055 

.063670 

53 

18.97 

11.1481 

.331108 

13 

46.51 

15.5573 

.066559 

54 

18.28 

10.9201 

.344791 

14 

45.75 

15.5J072 

.069566 

55 

17.58 

10.6805 

.359172 

15 

45.00 

15.4558 

.C72650 

56 

16.89 

10.4364 

.373815 

16 

44.27 

15.4028 

.075832 

57 

16.21 

10.1839 

.388967 

17 

43.57 

15.3501 

.078996 

58 

15.55 

9.9287 

.404275 

18 

42.87 

15.2956 

.082267 

59 

14.92 

9.6788 

.419268 

19 

42.17 

15.2384 

.085695 

60 

14.34 

9.4368 

.433789 

2C 

41.46 

15.1778 

.089331 

61 

13.82 

9.2154 

.447078 

21 

40.75 

15.1151 

.093095 

62 

13.31 

8.9900 

.460612 

22 

40.04 

15.05OC 

.097002 

63 

12.81 

8.7636 

.474183 

23 

39.31 

14.9972 

.101248 

64 

12.30 

8.5245 

488530 

24 

38.59 

14.9068 

.105592 

65 

11.79 

8.2793 

.503231 

25 

37.86 

14.8307 

.110157 

66 

11.27 

8.0211 

.518737 

26 

37.14 

14.7521 

.114876 

67 

10.75 

7.7552 

.534690 

27 

36.41 

14.6685 

.119892 

68 

10.23 

7.4813 

.551125 

28 

35.69 

14.5829 

125024 

69 

9.70 

7.1926 

.568446 

29 

35.00 

14.4982 

.130105 

70 

9.18 

6.9022 

.585S67 

30 

34.34 

14.4123 

.135258 

71 

8.65 

6.5945 

.604328 

31 

33.68 

14.3240 

.140560 

72 

8.16 

6.3045 

.621730 

32 

33.03 

14.2343 

.145938 

73 

7.72 

6.0341 

.637953 

33 

32.36 

14.1366 

.151789 

74 

7.33 

5.7894 

.652634 

34 

31.68 

14.0344 

.157932 

75 

7.01 

5.5S87 

.664681 

35 

31.00 

13.9291 

.164255 

76 

6.69 

5.3762 

.677427 

36 

30.32 

.  13.8174 

.170957 

77 

6.40 

5.1833 

.688999 

37 

29.64 

13.7021 

.180796 

78 

6.12 

4.9971 

.700173 

88 

28.96 

13.5833 

.185000 

79 

5.80 

4.7763 

.71342Q 

39 

28.28 

13.4579 

.192530 

80 

5.51 

4.5719 

.725687 

40 

27.61 

13.328P 

.200208 

81 

5.21 

4.3604 

.73837€ 

224  THE   CENTAL   SYSTEM. 

Example. — If  a  person  whose  probability  of  life  is  14.34  yeara 
inherits  an  estate  haviug  a  rental  value  of  $1000  per  annum,  the 
present  worth  of  the  annuity  of  $1000  for  that  term  is  9.4368  X 
1000  sb  $9436.80,— the  valuation  on  which  he  is  taxed. 


THE   CENTAL   SYSTEM. 

Efforts  have  been  made  by  the  Boards  of  Trade  in  most 
of  our  large  cities,  to  introduce  the  Cental  System  in  place 
of  the  bushel,  in  buying  and  selling  all  grains,  seeds,  and 
similar  productions.  The  Cental  is  one  hundred  pounds. 
Several  articles  have  been  sold  for  years  by  the  Cental  j  and 
its  general  introduction  would  be  attended  with  many  advan- 
tages. Dealings  in  grain  especially — the  quality  of  which  is 
indicated  by  its  weight — would  be  conducted  with  much  less 
inconvenience  than  at  present. 

The  weight  of  wheat,  rye,  barley,  and  oats,  per  bushel,  as 
now  estimated  among  shipping-merchants,  may  be  found  on 
page  228. 

To  find  the  price  per  cental  when  the  price  per  bushel  is 
given. 

Rule. — Multiply  the  price  per  bushel  by  100,  and  divide  by 
the  number  of  pounds. 

Example. — At  $1.38  per  bushel  for  wheat  of  the  weight 
of  60  lbs.  per  bushel,  what  is  the  price  per  cental  ? 

138  X  100  =  13800      1?800  -s-  60  =  230       Ans.  $2.30. 

To  find  the  price  per  bushel  when  the  price  per  cental  ia 
given. 

Rule. — Multiply  the  price  per  cental  by  the  number  of 
pounds  in  a  bushel,  and  divide  by  100. 

Example. — At  $2.50  per  cental,  what  is  the  price  of  a 
bushel  of  wheat? 
250  X  60  =  15000     15000  ■+- 100  =  150       Ans.  $1.50. 


SQUARE    ROOT.  225 

898.    SQUARE    ROOT. 

Rule. — I.  Point  off  the  given  number,  commencing  at  units' 
place,  into  periods  of  two  figures  each\ 

II.  Find  the  greatest  square  in  the  left-hand  period,  and 
place  its  root  in  the  quotient ;  subtract  the  square  number  from 
the  left-hand  period,  and  to  the  remainder  annex  the  ntxt 
period  of  the  dividend. 

III.  Double  the  root  already  found,  for  a  divisor  ;  find  how 
many  times  the  divisor  is  contained  in  the  dividend-  exclusive 
of  the  right-hand  figure ;  place  the  result  in  the  quotient,  and 
at  the  right  hand  of  the  divisor. 

IV.  Multiply  the  divisor  by  the  last  quotient-figure,  and 
subtract  the  product  from  the  dividend.  Bring  down  the  next 
period,  and  proceed  as  before. 

When  a  number  is  not  a  perfect  square,  annex  ciphers,  and 
continue  the  root  to  as  many  decimal  places  as  are  required. 

Note. — Mixed  decimals  must  be  pointed  off  both  ways  from  tho 
decimal  point. 

To  extract  the  square  root  of  a  fraction,  extract  the  square  root 
of  both  the  numerator  and  denominator.  When  they  are  not  per- 
fect squares,  reduce  the  fraction  to  a  decimal,  and  extract  the  root. 

EXAMPLES. 

1.  What  is  the  square  root  of  50964? 
50964(225.75+ 

42  i"l09 
84 


445 
4507 


2564 
2225 


33900 
31549 


45145 


235100 
225725 


2    What  is  the  square  root  of  8796,  and  of  123562  ? 
P 


226  LUMBER   MEASURE. 

LUMBER    MEASURE. 

399.  A  standard  board  is  one  that  is  12  feet  long,  1  foot 
wide,  and  1  inch  thick,  and  therefore  contains  1 2  square  feet 
1  inch  thick.  In  timber  for  exportation,  |  inch  more  is 
allowed  for  shrinkage,  planing,  &c.  The  length  of  boards, 
joists,  beams,  &c,  is  measured  in  even  inches,  odd  inches  not 
being  counted. 

400.  To  measure  boards. 

Rule. — Multiply  the  length  in  feet  by  the  width  in  inches, 

and  divide  the  product  by  12  ;  the  quotient  will  be  the  number 

of  square  feet.      When  the  board  is  more  or  less  than  1  inch 

thick,  add  or  subtract  in  proportion.     A  plank  2  inches  thick, 

12  feet  long,  and  1  foot  wide,  would  measure  21f.  feet,  board 

measure. 

Note. — If  the  boards  are  tapering,  take  half  the  sum  of  the 
two  ends  for  the  mean  width.  Some  inspectors  measure  only  the 
narrow  end. 

401.  To  measure  joists,  beams,  &c. 

Rule. — Multiply  the  width  in  inches  by  the  thickness,  and 
this  product  by  the  length  in  feet;  divide  by  12,  and  the  quo- 
tient will  be  the  contents  in  feet. 

402.  To  find  the  number  of  feet  which  a  given  log  will 
contain  when  sawn  square. 

Rule. — Square  half  the  diameter  in  inches,  and  multiply 

by  the  length  of  the  log  in  feet. 

Practically,  it  is  customary  to  take  two-thirds  or  -fa  of  the  dia- 
meter of  the  small  end  of  the  log,  for  the  side  of  the  square  which 
can  be  sawn  from  a  given  log. 

403.  To  find  the  number  of  boards  which  can  be  cut  from 
a  given  thickness  of  log. 

Rule. — Divide  the  thickness  of  the  log,  minus  J  inch,  by 
1  plus  the  saw-cut  (£  inch). 


GAUGING. 


227 


GAUGING 

Gauging  is  the  process  of  finding  the  contents  or  capacity 
of  casks  and  other  vessels. 

Ullage  is  the  difference  between  the  actual  contents  of  a 
vessel  and  its  capacity,  or  that  part  which  is  empty. 

The  usual  manner  of  gauging  is  by  the  diagonal  rod,  which 
gives  only  approximate  results,  but  sufliciently  accurate  for 
ordinary  purposes. 

FOR    SMALL   CYLINDRICAL   VESSELS. 
Rule. — Multiply  the  square  of  the  diameter,  in  inches,  by 
8 J/.,  and  that  by  the  height,  in  inches,  and  point  off  four  figures  ; 
the  result  will  be  the  capacity,  in  wine  gallons  and  decimals  of 
a  gallon. 

If  beer  gallons  are  required,  multiply  by  28  instead  of  8Jf. 
EXAMPLE. 

A  can  measures  15  inches  in  diameter,  and  is  2  ft.  2  in. 
in  height.     How  many  gallons  will  it  contain  ? 

15X15  =  225  X  26  in.  (height)  ==  5850 
5850  X  34  =  19.8900  Ans.  19T8^  gals. 

FOR   CASKS. 

RULE. — Add  A  of  the  difference  between  the  head  diameter 
and  the  bung  diameter  to  the  head  diameter,  for  the  mean 
diameter;  then  proceed  as  in  the  previous  rule.     Or, 

Add  together  the  square  of  the  bung  and  head  diameters, 
and  of  twice  the  middle,  diameter  between  the  bung  and  head. 
Multiply  the  sum  by  length  of  cask,  and  the  product  by  .1309, 

To  find  the  contents  of  ullage  casks. 

Rule. — When  the  cask  is  standing — 

Find  one-third  the  sum  of  the  head,  mean,  and  bung  dia- 
meters, and  square  the  result ;  multiply  by  the  height  of  the 
fli.id  in  inches,  and  that  product  by  .0034.  for  wine  gallons, 
and  by  .0028  for  beer  gallons. 


228  GRAIN   MEASURE. 

To  test  the  accuracy  of  dry  measures  which  are  in  the  form 
of  a  cylinder. 

Divide  2738  by  the  square  of  the  diameter,  in  inches;  the 
quotient  will  be  the  depth  for  a  bushel;  onerhalf  the  quotient 
will  be  the  depth  for  a  half-bushel;  one-quarter  of  the  quotient, 
for  a  peck,  &c. 

To  test  the  accuracy  of  measures  for  fluids  which  are  in  the 
form  of  a  cylinder. 

Square  the  diameter,  in  inches,  for  a  divisor. 

Divide  294  for  wine  gallons. 
"       359    «  beer       " 
"       342    «   dry        « 

GRAIN  MEASURE. 

To  find  the  quantity  of  grain  in  a  bin  or  wagon. 

Rule. — Multiply  the  height,  length,  and  breadth  together,  in 
inches,  and  divide  by  2150. J$ ;  the  quotient  will  be  the  num- 
ber of  bushels. 

To  find  the  quantity  of  grain  when  heaped  on  the  floor  in 
the  form  of  a  cone. 

Rule. — Square  the  depth  and  square  the  slant  height,  in 
inches;  take  their  difference  and  multiply  by  the  depth,  and 
this  product  by  .0005;  the  result  will  be  the  contents,  in  bushels. 

To  find  the  quantity  of  grain  when  heaped  against  a  straight 
wall. 

Rule. — Square  one-half  the  depth,  and  proceed  as  in  the 
previous  rule. 

WEIGHT   OF   GRAIN   PER   BUSHEL,  AS    ESTIMATED   AMONG 
SHIPPING   MERCHANTS. 

Wheat,     ....     60  lbs.        Oats, 35  lbs 

Rye, 56   //  Corn,      ....      56 

Barley,     ....     48   «r 


MECHANICAL    POWERS.  229 


CALCULATIONS   IN   NATURAL   SCIENCE. 
MECHANICAL   POWERS. 

Power,  or  Force,  is  a  compound  of  weight  and  velocity. 
Machinery  is  employed  to  save  either  time  or  force;  but  no 
machine  can  save  both :  either  force  is  gained  at  the  expense 
of  time,  or  time  is  gained  at  the  expense  of  force. 

Motion  takes  place  only  when  the  power  is  greater  than 
the  weight  or  resistance,  including  friction. 

It  is  a  principle  in  mechanics  that  the  power  is  to  the 
weight  as  the  velocity  of  the  weight  is  to  the  velocity  of  the 
power. 

The  mechanical  powers,  of  which  all  machines,  however 
complicated,  are  constructed,  are  three  in  number, — viz., 
Lever,  Inclined  Plane,  and  Pulley.  The  Wheel  and 
Axle  is  a  revolving  lever;  the  Wedge  is  a  double  inclined 
plane;  and  the  Screw  is  a  revolving  inclined  plane. 

The  Lever. — There  are  three  kinds  of  levers : — 

1.  When  the  fulcrum  is  between  the  weight  and  the  power. 

2.  When  the  weight  is  between  the  power  and  the  fulcrum. 

3.  When  the  power  is  between  the  fulcrum  and  the  weight. 
The  weight  multiplied  by  its  distance  from  the  fulcrum  is 

equal   to   the   power   multiplied   by   its   distance   from   the 
fulcrum. 

Example. — The  weight  on  the  short  arm  of  a  lever  is  120 
lbs.,  at  a  distance  of  1  foot  from  the  fulcrum :  what  power 
applied  to  the  long  arm,  at  a  distance  of  8  feet,  will  balance  it? 

120  X  1  =  120.     120  -r-  8  =  15  lbs.  Ans. 
When  the  fulcrum  or  support  is  between  the  weight  and 
power,  the  pressure  upon  the  fulcrum  equals  the  sum  of  the 
weight  and  power. 

When  the  fulcrum  is  at  one  extremity  and  the  power  or 
weight  at  the  other,  the  pressure  upon  the  fulcrum  equals 
the  difference  between  the  weight  and  the  power. 

20 


280  MECHANICAL    POWERS. 

The  Wheel  and  Axle,  or  Revolving  Lever. — The 
power  multiplied  by  the  radius  (half  the  diameter)  of  the 
wheel  is  equal  to  the  weight  multiplied  by  the  radius  of  the 
axle. 

Example. — The  diameter  of  a  wheel  is  80  inches,  and  that 
of  the  axle  6  inches :  what  power  on  the  wheel  will  balance 
600  lbs.  on  the  axle  ? 

Radius  of  wheel,  40  inches;  radius  of  axle,  3  inches. 
600  X  3  =  1800.     1800  -*-  40  =  45  lbs.  Ans. 

Pulleys. — Pulleys  are  of  two  kinds,  fixed  and  movable 
pulleys.  Fixed  pulleys  do  not  increase  the  power,  but  they 
are  useful  for  applying  it  in  the  most  convenient  direction. 

In  the  movable  pulley  all  the  parts  of  a  cord  are  equally 
stretched,  and  therefore  each  cord  from  one  pulley  to  another 
will  bear  an  equal  part.  Hence  the  power  is  doubled  for 
every  movable  pulley. 

Example. — What  power  is  required  to  balance  a  weight 
of  1800  lbs.,  by  means  of  3  movable  pulleys? 

3X2  =  6.     1800  -r-  6  =  300  lbs.  Ans. 

The  Inclined  Plane. — The  power  required  to  raise  a 
body  up  an  inclined  plane,  is  equal  to  the  product  of  the 
height  and  weight  divided  by  the  length  of  the  plane. 

The  Wedge,  or  Double  Inclined  Plane,  derives  its  advan- 
tages from  the  fact  that  power  can  be  applied  to  it  by  per- 
cussion or  a  stroke.  As  a  theoretical  rule,  it  may  be  said 
that  when  two  movable  bodies  are  forced  apart,  the  power 
required  is  equal  to  the  product  of  the  resisting  power  mul- 
tiplied by  £  the  thickness  of  the  back,  divided  by  the  length 
of  one  of  the  inclined  sides. 

When  only  one  of  the  bodies  is  movable,  the  power  re- 
quired is  equal  to  the  product  of  the  resisting  power  multi- 
plied by  the  thickness  of  the  back,  divided  by  the  length  of 
the  wedge. 

The  Screw,  or  Revolving  Inclined  Plane,  is  an  inclined 


MECHANICAL    POWERS.  231 

plane  wound  round  a  cylinder,  and  its  length  is  found  by 
adding  the  square  of  the  circumference  of  the  screw  to  the 
square  of  the  distance  between  the  threads,  and  extracting 
the  square  root  of  the  sum.  The  height  of  the  plane  is  the 
distance  between  any  two  contiguous  threads  j  the  base  of  the 
plane  is  the  circumference  of  the  screw.  Having  the  length 
of  the  plane  and  its  height,  the  power  required  is  found  as 
for  the  inclined  plane. 

If  the  power  is  applied  at  the  end  of  a  lever,  the  cir- 
cumference of  the  thread  may  be  taken  as  extending  to  "the 
circle  formed  by  the  end  of  the  lever. 

Example. — If  the  distance  of  the  centres  of  two  threads 
be  i  of  an  inch,  and  the  radius  of  the  lever  attached  to  the 
screw  be  12  inches,  what  is  the  power  of  the  screw? 

The  circumference  of  the  screw  will  be  12  X  2  X  3.14156 
—  75£  in.,  nearly.  Therefore,  to  find  the  power  of  the  screw, 
75?  -r-  £  =  300&,  the  power  of  the  screw. 

The  power  of  a  man,  it  is  estimated,  on  an  average,  is  able 
to  raise  70  lbs.  1  foot  high  in  a  second  for  10  hours  per  day. 

Horse-Power,  in  machinery,  is  estimated  at  33000  lbs. 
raised  1  foot  every  minute.  A  machine  horse-power  is  con- 
sidered equal  to  4.4  horses.  The  strength  of  one  horse  is 
equivalent  to  that  of  5  men.  A  draft  horse  can  draw  1600  lbs. 
23  miles  per  day,  weight  of  carriage  included. 

Steam,  under  ordinary  circumstances,  is  equal  to  the 
pressure  of  the  atmosphere,  or  about  15  lbs.  on  the  square 
inch.  A  cubic  inch  of  water  is  converted  into  about  1  cubic 
foot  of  steam,  producing  a  force  equal  to  2200  lbs.  1  foot  high. 
Its  weight  is  .488  that  of  the  air;  or  27.206  cubic  feet  of 
steam  equal  1  lb.  avoirdupois. 

One  cubic  foot  of  boiler  will  heat  2000  feet  of  space  to  an 
average  heat  of  about  70°  or  80°  Fahr.;  and  one  square  foot 
of  steam-pipe  is  adequate  to  the  warming  of  200  cubic  feet 
of  space. 


232  FALLING   BODIES. 

GRAVITY   OF  BODIES. 

The  gravity  or  weight  of  bodies  above  the  surface  of  the 
earth  decreases  as  the  square  of  their  distance  from  the 
earth's  centre,  in  semi-diameters  of  the  earth. 

Example. — If  a  body  weighs  1800  lbs.  at  the  earth's  sur- 
face, what  will  it  weigh  2000  miles  above  the  earth  esti- 
mating the  diameter  of  the  earth  at  8000  miles? 

From  the  centre  of  the  earth  to  the  given  height  is  1£  semi-diame- 
ter! 1 J  X  H  =  2h    1800  -*-  2£  =  800  lbs.,  Ans. 


FALLING   BODIES. 

Gravitating  bodies  attract  each  other  with  forces  varying 
inversely  as  the  squares  of  their  distances. 

A  body  falling  freely  from  rest  will  descend  16^  feet  the 
first  second,  and  the  space  fallen  through  in  any  number 
of  seconds  equals  the  product  of  16T'3  by  the  square  of  the 
number  of  seconds.  Thus,  a  body  in  4  seconds  will  fall 
4  X  4  =  16  X  IGyV  =  257^  feet;  in  5  seconds  it  will  fall  52 
X  16J2=  40211  feet. 

To  find  the  time  required  for  a  body  to  fall  through  a 
given  space,  divide  the  square  root  of  the  space  by  4;  the 
quotient  will  be  the  time,  in  seconds. 

Example. — Required  the  time  for  a  ball  to  fall  from  the 
spire  of  a  church  256  feet  high. 

|/256  =  16.     16^-4  =  4  seconds,  Ans. 

The  Velocities  of  falling  bodies  increase  as  the  times. 
Thus,  at  the  end  of  the  first  second  the  velocity  will  be  321; 
at  the  end  of  the  second  second,  64| ;  at  the  end  of  the  third 
second,  32  J  X  3=  96-1. 

The  Mean  Velocity  is  found  by  taking  the  square  root  of 
the  space  in  feet,  multiplied  by  64£ ;  or  by  dividing  the 
space  fallen  through  in  feet  by  the  number  of  seconds.     The 


SPECIFIC   GRAVITY.  233 

velocity  acquired  at  any  period  is  equal  to  twice  the  mean 
velocity  during  that  period. 

The  Momentum  with  which  a  falling  body  will  descend  is 
equal  to  its  weight  multiplied  by  its  velocity. 

Examples. — 1.  What  is  the  velocity  of  a  weight  falling 
2*  feet?     2*  X  64  =  144.     j/144  =  12  feet,  Ans. 

2.  What  is  the  force  with  which  a  weight  of  200  lbs.  will 
strike  after  falling  2|  feet? 

Velocity  =  12  X  200  =  2400  lbs.,  Ans. 

To  find  the  number  of  feet  fallen  through,  when  the 
weight  and  momentum  are  given. 

Divide  the  momentum  by  the  weight  for  the  velocity ;  then 
divide  the  square  of  the  velocity  by  64,  for  the  height  re- 
quired. 

Example.  —  How  high  will  it  be  necessary  to  saise  a 
weight  of  50  lbs.  to  produce  a  force  at  striking  of  800  lbs.  ? 

800  -=-  50  =  16,  the  velocity. 
162  =  256  -f-  64  =  4  feet,  Ans. 

A  fall  of  y^  of  an  inch  in  a  mile  will  produce  a  current  in 
rivers. 

SPECIFIC  GRAVITY. 

The  Specific  Gravity  of  any  substance  is  its  weight 
compared  with  that  of  an  equal  bulk  of  fresh  water. 

A  cubic  foot  of  rain-water,  at  a  temperature  of  60°  Fahren- 
heit, weighs  62£  lbs.,  or  1000  ounces  avoirdupois.  One  cubic 
inch  weighs  }$£§■  ounces. 

The  specific  gravity  of  a  body  may  be  found  by  dividing  its 
weight  by  the  weight  of  an  equal  quantity  of  fresh  water. 
"Bodies  heavier  than  water,  when  immersed,  lose  the  weight 
of  an  equal  bulk  of  water.  Floating  bodies  lose  weight  in 
proportion  to  the  quantity  of  fluid  they  displace. 

Tables  have  been  constructed  showing  the  specific  gravi- 
ties of  most  substan  >ef.  Pure  gold,  cast,  has  a  specific  gravity 

20* 


234 


SPECIFIC    GRAVITY. 


of  19  258,  or  more  than  nineteen  times  as  heavy  as  water 
gold  22  carats  fine,  17.486  j  pure  silver,  cast,  10.474 
standard  silver,  10.312;  cast  iron,  7.271;  cast  lead,  11.352 
copper,  cast,  8.788;  common  marble,  2.686;  brick,  2.000 
cork,  .240;  olive  oil,  .915;  pure  alcohol,  .792;  air  at  the 
earth's  surface,  .001^,  or  g4^;  hydrogen,  .070  that  of  air. 
Oxygen  equals  1.106  of  air. 

Knowing  the  specific  gravity  and  the  size  of  a  given  body, 
we  can  ascertain  its  weight;  or,  having  the  weight  and  spe- 
cific gravity,  we  are  enabled  to  find  its  size. 

Examples. — 1.  What  is  the  weight  of  a  cubic  block  of 
cast  iron,  each  side  being  2  feet? 

2X2X2=8  cubic  feet  in  the  block. 

Specific  gravity  of  iron,  7.271  X  8  =  58168  ounces. 

58168  -t-.14U=  3635J  lbs.,  Ans. 

2.  What  is  the  size  of  a  cubic  piece  of  marble  weighing 
1200  lbs.  ? 

1200  lbs.  =  19200  ounces.    Specific  gravity  of  marble,  2.686. 
19200  -j-  2686  =  723g9/ff  cubic  feet,  Ans. 

To  determine  the  quantity  of  two  ingredients  in  a  com- 
pound which  they  form,  or  the  quantity  of  adulteration,  em- 
ploy the  following  formula: — 


As  the  product  of  the 
difference  between 
the  specific  gravities 
of  the  heavier  and 
the  lighter  body, 
multiplied  by  the 
specific  gravity  of 
the  compound, 


(The  weight) 
•I  of  the  y 
I  compound,  J 


The  product  of  the  dif-' 
ference  between  the 
specific  gravity  of 
the  compound  and 
that  of  the  lighter 
body,  multiplied  by 
the  specific  gravity 
of  the  heavier  body, 


The  weight 

of   the 

heavier 

body. 


To  obtain  the  weight  of  the  lighter  body,  substitute  for 
the  third  term,  "  The  product  of  the  difference  between  the 
specific  gravity  of  the  heavier  body  and  that  of  the  compound, 
by  the  specific  gravity  of  the  lighter  body." 

How  to  Try  Spirituous  Liquors. — A  cubic  inch  of  good 
brandy,  or  other  proof  spirits,  weighs  234  grains :  there- 
fore, if  a  true  cubic  inch  of  any  metal  weigh  234  grains  less 


PRESSURE    OF    THE   ATMOSPHERE.  235 

in  spirits  than  in  air,  the  spirits  are  proof.  If  the  cube  lose 
less,  they  are  above  proof;  if  it  lose  more,  they  are  under 
proof:  for  spirits  are  lighter  as  they  are  better  in  quality. 

PRESSURE   OF   THE   ATMOSPHERE. 

A  cubic  foot  of  air  at  the  earth's  surface  weighs  1.222 
ounces;  13.27  cubic  feet  weigh  1  lb.  Water  is  about  825 
times  heavier  than  air  The  air  at  the  earth's  surface,  in 
consequence  of  the  weight  of  the  atmosphere  above  it,  is  in  a 
state  of  compression.  At  a  mean  rate,  the  pressure  is  equal 
to  the  support  of  29.5  inches  of  mercury,  or  33.18  feet  of 
fresh  water,  or  15  lbs.  pressure  upon  the  square  inch. 

The  pressure  of  air  on  the  surface  of  fluids  causes  them  to 
rise  in  pipes  or  vessels  when  the  air  is  removed  above  them, 
but  not  more  than  33.18  feet. 

A  cubic  inch  of  mercury  weighs  7.866  ounces,  or  nearly 
half  a  pound  avoirdupois :  therefore  30  inches  of  mercury 
will  weigh  15  lbs.,  and  will  balance  the  pressure  of  the  atmos- 
phere.    The  air  presses  equally  on  every  side. 

If  the  air  was  of  the  same  uniform  density  upwards,  we 
could  easily  tell  its  height;  for  if  its  weight  is  to  water  as 
1.222  is  to  1000,  then  33.18  feet  is  in  the  same  proportion 
to  5£  miles,  which  would  be  the  height.  But  the  air  becomes 
rarer  as  it  ascends ;  and  when  the  altitude  is  in  arithmetical 
proportion  the  rarity  will  be  in  geometric  proportion.  Thus, 
if  at  7  miles'  height  it  is  4  times  lighter  than  at  the  earth's 
surface,  at  14  miles'  it  will  be  16  times,  and  at  21  miles'  64 
times  lighter ;  and,  by  similar  calculation,  the  atmosphere  has 
been  found  to  reach  the  height  of  about  50  miles  A  column 
a  foot  square,  reaching  to  the  height  of  the  atmosphere,  is 
equal  to  2116.8  lbs. 

The  heights  of  mountains  have  been  calculated  by  the  use 
of  the  barometer,  which  rises  or  falls  according  to  the  pressure 
or  density  of  the  atmosphere.  The  following  short  method 
is  sufficiently  correct  for  all  ordinary  purposes. 


236  VELOCITY   OF    SOUND. 

Take  the  height  of  the  mercury  at  the  top  and  at  the 
bottom  of  the  mountain,  aud  then  employ  the  following 
formula : — 

Sum  of  the!    .  /  Difference  of")    ,.    (  Mnnn  1   ,  /Height  of  mountain, 
heights     /  *  \  the  heights  /   V   \  °~UUU  J  *  \  in  feet. 

Example. — If  the  barometer  stands  29.8  at  the  bottom  of 
a  mountain,  and  27.2  at  the  top,  what  is  the  height  of  the 
mountain  ? 

27.2      29.8 

29.8      27.2 


57      :     2.6  : :  52000  :  2372  feet,  Ans. 

The  pressure  of  condensed  air  is  in  proportion  to  its  con- 
densation. Thus,  air  compressed  into  £  its  usual  space  will 
press  with  a  force  equal  to  15  X  4  =  60  lbs.  per  square  inch  ; 
but,  as  the  pressure  outside  is  15  lbs.  per  square  inch,  the 
real  pressure  is  60  —  15  =  45  lbs.  per  square  inch 

Velocity  and  Force  of  the  Wind. — At  a  velocity  of  5 
miles  an  hour,  wind  presses  I  lb.  on  a  square  foot;  at  15 
miles  an  hour,  1£  lbs.  per  square  foot;  at  30  miles  an  hour, 
or  22  feet  a  second,  4J  lbs.  per  square  foot,  and  is  what  is 
called  a  brisk  blow;  at  50  miles  an  hour,  the  pressure  is  12 £ 
lbs.  per  square  foot,  and  produces  a  storm;  at  100  miles  an 
hour,  the  pressure  is  50  lbs.  per  square  foot,  and  is  sufficient 
to  tear  up  trees. 

VELOCITY  OF   SOUND. 

Sound  travels  1142  feet,  or  T^  of  a  mile,  per  second,  or  a 
mile  in  about  4§  seconds.  Sound  of  all  kind  travels  at  the 
same  rate,  the  whisper  as  fast  as  the  cannon's  roar.  Sound 
passes  in  water  at  the  rate  of  4708  feet  per  second. 

Examples. — 1.  A  flash  of  lightning  was  observed  5 
seconds  before  the  thunder  was  heard.  What  was  the  dis- 
tance of  the  cloud  ? 

-Jj  x  5  —  j|  =  lj1^  miles,  Ans. 


LIGHT.  237 

2.  The  report  of  a  minute-gun  at  sea  was  heaid  4  seconds 
after  the  flash  was  seen.     How  far  distant  was  the  gun  ? 


LIGHT. 

Light  travels  from  the  sun  to  the  earth,  95,000,000  miles, 
in  8£  minutes.  The  intensity  of  light  at  any  distance  from 
a  luminous  body  is  in  an  inverse  proportion  to  the  square  of 
the  distance.  Thus,  at  a  certain  point,  a  board  1  foot  square 
will  cast  a  shadow  2  feet  square  at  double  the  distance, 
3  feet  square  at  3  times  the  distance,  4  feet  square  at  4  times 
the  distance.  The  areas  being  increased  as  the  squares  of 
the  distances,  the  light,  consequently,  is  decreased  in  the 
same  proportion. 

Solids  shine  in  the  dark  when  heated  from  600°  to  700°. 

Light  from  gas,  as  usually  obtained,  is  not  in  proportion  to 
the  gas  consumed.  It  is  more  economical  to  have  one  good 
large  gas-light  than  several  small  ones.  An  argand  burner, 
consuming  five  feet  per  hour,  giving  the  light  of  12  candles, 
6  in  a  pound,  when  reduced  so  that  only  three-fourths  of  that 
quantity  is  burned,  instead  of  giving  the  light  of  9  candles, 
the  proportional  quantity,  produces  the  light  of  6  candles 
only,  a  positive  loss  of  36  per  cent,  of  light.  A  burner  con- 
suming two  feet  per  hour  gives  the  light  of  two  and  a  quarter 
candles  only,  while  a  burner  consuming  7£  feet  per  hour  gives 
the  light  of  twenty-two  candles,  the  pressure  being  uniformly 
y4^  of  an  inch. 

A  clear  glass  globe  obstructs  about  12  per  cent,  of  the 
light  j  a  clear  globe  engraved  with  flowers,  about  24  per  cent. ; 
a  globe  ground  all  over  with  flowers,  about  forty  per  cent.; 
an  opal  globe  with  flowers,  about  60  per  cent. 

HEAT   AND   COLD. 

Heat  expands  all  bodies,  with  few  exceptions,  but  in 
different  degrees.     It  expands  liquids  more  than  solids,  and 


238  HEAT   AND    COLD. 

gases  more  than  liquids.  The  thermometer,  by  its  scale  oi 
equal  divisions  marked  upon  the  tube,  indicates  the  degree 
of  heat  in  a  given  case.  The  mercury  in  the  thermometer 
expands  as  heat  is  applied,  and  the  scale  enables  us  to  deter- 
mine the  amount.  The  temperature  of  melting  ice  is  called 
the  freezing  point,  and  is  marked  32°.  The  temperature  of 
boiling  water  is  marked  212°.  When  the  temperature  is  68°, 
it  is  called  summer  heat;  98°  is  called  blood  heat;  108°, 
fever  heat.  This  is  the  scale  commonly  used  in  this  country, 
England,  and  Holland,  and  it  is  known  by  the  name  of  the 
inventor,  Fahrenheit.  Above  the  boiling  point,  heat  is' 
measured  by  an  instrument  called  a  pyrometer.  For  very 
low  temperatures,  spirit-of-wine  thermometers  are  employed. 
Mercury,  in  freezing,  contracts,  and  therefore  does  not  burst 
the  thermometer. 

The  Celsius,  or  Centigrade,  thermometer,  universally  used 
in  France  and  Northern  Europe,  and  the  Reaumer  thermo- 
meter, used  in  Spain,  commence  with  zero  as  the  freezing 
point.  1°  Fahrenheit  =  |°  Centigrade  =  |°  Reaumer:  so 
that  in  making  comparisons  32°  is  to  be  taken  from  Fahren- 
heit, and  then  that  part  of  the  remaining  degrees  which  is 
expressed  by  the  fractions  just  given. 

Common  fire  is  estimated  to  be  at  a  temperature  of  790°. 

Lead  expands  at  212°  Fahrenheit  from  1,000,000  parts  to 
1,002,848;  it  melts  at  594°,  and  does  not,  when  cold,  return 
to  its  original  dimensions.  Lead  pipes  which  convey  hot 
water  or  steam  become  permanently  elongated,  and  leaden 
linings,  where  hot  water  is  used,  become  gathered  into  ridges. 
Tin  at  212°  expands  from  1,000,000  parts  to  1,001,937, 
and  melts  at  421°.  At  the  same  degree  silver  expands  to 
1,001,909,  and  melts  at  1850°.  Gold  expands  to  1,001,466, 
and  melts  at  1983°  ;  copper,  to  1,001,718,  and  melts  at  2160°. 

Iron  expands  to  1,001,182,  becomes  red-hot  in  the  dark  at 
752°,  in  daylight  at  1077°,  and  melts  at  2754°. 


HEAT    AND    COLD.  239 

The  effects  of  heat  may  be  seen  in  the  iron  rails  on  the  rail- 
roads  throughout  the  country.  There  is  a  variation  of  80°  in 
the  temperature  between  the  cold  of  winter  and  the  heat  of 
summer.  This  is  sufficient  to  elongate  a  bar  of  iron  ten 
inches  long,  five  one-thousandths  of  an  inch,  or  tj^q  part, 
which  would  require,  to  produce  the  same  effect,  a  force  of 
fifty  tons  upon  the  square  inch.  The  tubes  of  Menai  Bridge 
vary  in  length  with  the  changes  of  the  air,  from  half  an  inch 
to  three  inches  every  twenty-four  hours.  Iron  bars,  when 
much  heated,  frequently  injure  masonry,  instead  of  support- 
ing it,  from  the  same  cause. 

Mercury  expands  between  32°  and  212°  from  1,000,000  to 
1,018,155,  and  boils  at  662°.  Ether  boils  at  95°.  Vinous 
fermentation  begins  at  60°  to  77°;  acetous  fermentation 
begins  at  78°. 

Most  metals  occupy  less  space  when  solid  than  when  melted, 
and  therefore  produce  imperfect  casts.  For  this  reason  coins, 
medals,  and  ornamental  wares  are  stamped  instead  of  cast,  to 
secure  the  requisite  size,  sharpness,  and  beauty. 

Alcohol  expands  -J  between  32°  and  212°,  and,  under  ordi- 
nary changes  of  atmosphere,  would  increase  from  20  gallons 
in  January  to  21  gallons  in  July.     It  boils  at  173°. 

Water  in  a  vacuum  boils  at  124°  less  of  heat  than  when  under 
the  ordinary  pressure  of  the  atmosphere,  or  when  the  barometer 
is  30  inches.     On  Mt.  Blanc  water  boils  at  187°.     The  boil- 
ing point  of  water,  with  a  pressure  indicated  by  the  baromete 
of  between  27  and  31  inches,  varies  1.65°  for  every  inch. 

"Water  converted  into  steam  occupies  about  1700  time: 
as  much  space  as  before.  In  freezing  it  expands  ^  of  it 
bulk,  and  -g-J-  for  every  degree  from  40°  to  212°  :  hence  ic 
floats  on  the  surface  of  water,  and  close  vessels  are  burst  wher 
the  water  they  contain  is  frozen.  Melted  snow  produces  about 
£  of  its  bulk  in  water. 

Sea-water  freezes  at  27°,  strong  wine  at  20°,  brandy  at  7°. 


240  CALCULATIONS    IN    NATURAL    SCIENCE. 

At  the  depth  of  45  feet  the  temperature  of  the  earth  is 
uniform  during  the  entire  year 

Freezing  Mixtures  are  frequently  required;  and  the 
one  most  convenient  for  common  use,  such  as  freezing  ices 
and  creams,  is  composed  of  2  parts  ice  or  snow  and  1  part 
common  salt.  With  this  a  temperature  of  5°  below  zero,  or 
37°  below  the  freezing  point,  can  be  obtained.  Another 
compound,  of  3  parts  snow  or  ice  and  4  parts  chloride  of 
calcium,  will  produce  a  temperature  of  14°  below  zero. 

Heat  is  absorbed  most  rapidly  and  longest  retained  by  dark 
and  dull  surfaces,  and  is  generally  conducted  least  by  sub- 
stances in  condition  of  least  density.  Heat  and  light  are 
both  reflected  best  by  bright  surfaces.  Compared  with  a 
rough,  blackened  surface  as  1,  the  reflective  power  of  tin  is 
80,  of  brass,  polished,  93,  of  gold  and  silver,  polished,  97. 

THE   STRENGTH   OF    MATERIALS. 

The  strength  of  a  beam  increases  as  the  square  of  one  of 
its  homologous  sides,  while  the  weight  of  the  beam  increases 
as  the  cube;  and  therefore  long  beams  are  weak  from  their 
own  weight. 

A  beam  twice  as  broad  as  another  is  twice  as  strong,  one 
twice  as  deep  is  four  times  as  strong,  and  one  twice  as  long 
has  only  half  the  strength. 

A  triangular  beam  is  twice  as  strong  when  resting  on  its 
broad  base  as  when  resting  on  its  edge. 

If  the  beam  is  supported  in  the  middle  and  loaded  at  each 
end,  it  will  bear  the  same  weight;  that  is,  each  end  will  bear 
half  the  weight. 

A  beam  fixed  at  both  ends  and  loaded  in  the  middle  will 
bear  one-half  more  weight  than  it  will  when  the  ends  are 
loose. 

When  the  weight  is  distributed  uniformly  over  the  whole 
length  of  the  beam,  it  will  bear  double  what  it  will  when  the 


CALCULATIONS    IN    NATURAL    SCIENCE.  241 

entire  weight  is  in  the  middle.  A  beam  fixed  at  one  end  and 
loaded  at  the  end  projecting,  will  bear  only  one-fourth  the 
weight  it  will  when  loaded  in  the  middle  and  supported  at  the 
ends. 

From  various  experiments,  it  appears  that  the  ultimate 
strength  of  various  bodies,  an  inch  square  and  an  inch  round 
bar  of  each,  1  foot  long,  loaded  in  the  middle  and  lying  loose 
at  both  ends,  is  as  follows : — 

Square  bar.  Round  bar. 

Oak 800  lbs.  628  lbs. 

Ash 1137  893 

Elm 569  447 

Pitch  Pine 916  719 

Deal 566  444 

Cast  Iron 2580  2026 

Wrought  Iron 4013  3152 

One-third  of  the  above  weights  is  considered  sufficient  in 
most  cases  for  a  permanent  load. 

To  find  the  strength  of  any  rectangular  beam  supported  at 
both  ends  and  loaded  in  the  middle,  or  supported  in  the 
middle  and  loaded  at  both  ends. 

Rule. — Multiply  the  number  in  the  table  by  the  breadth  and 
square  of  the  depth  in  inches,  and  divide  the  product  by  the 
length  in  feet :  the  quotient  will  be  the  weight,  in  pounds. 

Example. — What  weight  will  break  a  pitch  pine  plank  16 
feet  long,  10  inches  broad,  and  2  inches  thick,  when  supported 
at  both  ends  and  loaded  in  the  middle  ? 

916  X  10  X  22 

„„  =2290  lbs.,  Ans. 

Id 

A  plank  of  the  same  length  and  thickness,  20  inches  broad, 
would  require  twice  the  weight,  or  4580  lbs.,  to  break  it,  and 
one  of  the  same  length  and  breadth,  twice  as  thick,  would  re- 
quire 4  times  the  weight.  A  plank  twice  as  long,  of  the 
same  breadth  and  thickness,  would  break  with  1145  lbs.,  or  \ 

the  above  weight. 

Q  21 


242  PROPERTIES    OF    NUMBERS. 


PROPERTIES   OF   NUMBERS. 

Any  number  may  be  divided  by  1^,  2,  2 J,  or  5,  without  a  re- 
mainder, when  its  right-hand  figure  may  be  thus  divided. 

The  square  root  of  a  number  is  greater  than  any  of  its  prime 
factors. 

Any  number  may  be  divided  by  an  aliquot  part  of  a  hundred  when 
its  two  right-hand  figures  may  be  thus  divided. 

Any  number  may  be  divided  by  an  aliquot  part  of  a  thousand 
"when  its  three  right-hand  figures  may  be  thus  divided. 

Any  number  divided  by  3  or  9  will  leave  the  same  remainder  as 
the  sum  of  its  digits  divided  by  3  or  9. 

The  difference  between  any  number  and  the  sum  of  its  digits  is  a 
multiple  of  9. 

The  difference  between  a  number  and  the  digits  of  the  same  num- 
ber arranged  in  another  order  is  always  divisible  by  9. 

MISCELLANEOUS   RULES. 

To  find  two  numbers  when  their  sum  and  difference  are  given. 

Rule. — Add  one-half  their  sum  to  one-half  their  difference,  for  the 
larger  number,  and  take  one-half  their  difference  from  one-half  their  sum, 
for  the  smaller. 

To  find  two  numbers  when  their  sum  and  product  are  given. 

Rule. — Take  the  square  root  of  the  difference  between  the  square  of 
the  sum  and  four  times  their  product ;  the  result  will  be  the  difference  be- 
tween the  numbers. 

To  find  two  numbers  when  their  difference  and  product  are  given. 

Rule. — To  the  square  of  their  difference  add  four  times  the  product, 
and  the  square  root  of  the  sum  will  be  the  sum  of  the  numbers. 
»  To  find  two  numbers  when  their  sum  and  quotient  are  given. 

Rule. — Divide  the  sum  by  the  quotient  increased  by  1;  the  result  will 
be  the  smaller  number. 

To  find  two  numbers  when  their  difference  and  quotient  are  given. 

Rule. — Divide  the  difference  by  the  quotient  less  1,  for  the  smaller 
number. 

To  find  two  numbers  when  their  sum  and  the  sum  of  their  squares 
are  given. 


KULES   IN   MENSURATION.  243 

Rule. — From  the  square  of  their  sum  take  the  sum  of  their  squares, 
and  half  the  remainder  will  be  the  product ;  then  proceed  by  Rule  above. 

To  find  two  numbers  when  their  sum  and  the  difference  of  their 
squares  are  given. 

Rule. — Divide  the  difference  of  their  squares  by  their  sum;  the  quo- 
tient will  be  their  difference. 

To  find  two  numbers  when  their  product  and  quotient  are  given. 

Rule. — Divide  the  product  by  the  quotient  and  the  square  root  of  the 
result  will  be  the  smaller  number. 

To  find  two  numbers  when  the  square  of  their  sum  and  the  sum 
of  their  squares  are  given. 

Rule. — From  the  square  of  the  sum  take  the  sum  of  the  squares;  the 
remainder  will  be  twice  the  product  of  the  numbers.  Subtract  four  times 
the  product  from  the  square  of  the  sum,  and  the  remainder  will  be  the 
square  of  their  difference.  Extract  the  roots,  and  proceed  as  in  Rule 
above. 

RULES   IN   MENSURATION. 

To  find  the  contents  of  an  irregular  body. 

Immerse  the  body  in  a  vessel  full  of  water,  and  measure  the  quantity 
of  water  displaced. 

To  find  the  area  of  a  rectangle. 

Multiply  the  length  by  the  breadth. 

To  find  the  area  of  a  triangle. 

Multiply  the  base  by  one-half  the  altitude.     Or, 

From  half  the  sum  of  the  three  sides  subtract  each  side  separately  ; 
multiply  together  the  half  sum  and  the  three  remainders,  and  extract  the 
tquare  root  of  the  product. 

To  find  the  circumference  of  a  circle. 

Multiply  the  diameter  by  3.14156,  or  S\. 

To  find  the  diameter  of  a  circle. 

Divide  the  circumference  by  3.  14156  ;  or  multiply  it  by  .818309. 

To  find  the  area  of  a  circle. 

Multiply  half  the  diameter  by  half  the  circumference.     Or, 

Multiply  the  square  of  the  diameter  by  .785398. 

To  find  the  side  of  a  square  equal  to  a  given  circle. 

Multiply  the  diameter  by  .8S6227  or  £  of  yt '3.14156. 


244 


RULES   IN   MENSURATION. 


To  find  the  diameter  of  a  circle  equal  to  a  given  square. 

Multiply  ths  side  of  the  square  by  1.12838. 

To  find  the  side  of  an  inscribed  square. 

Multiply  the  diameter  by  .707106,  or  y/5  ;  or  the  circumference  by 

225079. 

To  find  the  side  of  the  largest  inscribed  equilateral  triangle. 
Multiply  the  diameter  by  .866025. 
To  find  the  circumference  from  an  inscribed  square. 
Divide  the  side  of  the  square  by  .225079. 

To  find  the  diameter  of  the  three  largest  equal  circles  that  can  be 
inscribed  in  a  given  circle. 

Divide  the  diameter  of  the  given  circle  by  2.155. 

To  find  the  contents  of  a  cube. 

Multiply  three  sides  together. 

To  find  the  surface  of  a  cube. 

Multiply  the  square  of  the  length  of  one  of  Ut  sides  by  6. 

To  find  the  surface  of  a  sphere. 

Multiply  the  diameter  by  the  circumference. 

To  find  the  solidity  of  a  sphere. 

Multiply  the  square  of  the  diameter  by  3.1^16*     Or, 

Multiply  the  cube  of  the  diameter  by  .5236. 

To  find  the  solidity  of  a  cylinder. 

Multiply  the  area  of  one  end  by  the  length. 


A  CUBIC  FOOT  OF 


Pounds. 

Pound*. 

Loose  earth  or  sand 

weighs       95 

Clay  and  stones  weigh 

160 

Common  soil 

14 

124 

Cork                    weighs 

16 

Strong       " 

«< 

127 

Tallow                     " 

69 

Clay 

It 

135 

Bricks                      '* 

125 

Lead 

M 

708f 

Marble                    " 

171 

Brass 

U 

634£ 

Granite                    " 

165 

Copper 

<< 

655 

Sea-water                " 

64ft 

Wrought  iron 

<< 

486£ 

Oak  wood                " 

55 

Anthracite  coal 

<« 

50  to  55 

Red  pine                 " 

42 

Bituminous    " 

If 

45  to  55 

White  pine             " 

30 

Charcoal  (hard  wood) " 


18* 


Charcoal  (pine  wood)  weighs  1 8 


BUSINESS    FORMS 


AND 


INFORMATION. 


»!•  46 


BUSINESS   MAXIMS. 


Endeavor  to  be  perfect  in  the  calling  in  which  you  are 
engaged. 

Think  nothing  insignificant  which  has  a  bearing  upon  your 
success. 

There  is  more  in  the  use  of  advantages  than  in  tne  measure 
of  them. 

Make  no  investments  without  a  full  acquaintance  with  their 
nature  and  condition ;  and  select  such  investments  as  have 
intrinsic  value. 

Of  two  investments,  choose  that  which  will  best  promote 
your  regular  business. 

Becon:.3  known, — and  favorably  known. 

Never  refuse  a  choice  when  you  can  get  it. 

Goods  well  bought  are  half  sold. 

Goods  in  store  are  better  than  bad  debts. 

Nothing  valuable  is  lost  by  civility. 

By  prosecuting  a  useful  business  energetically,  humanity  is 
benefited. 

Keep  accurate  accounts,  and  know  the  exact  condition  of 
your  affairs. 

Be  economical :  a  gain  usually  requires  expense ;  wl  at  is 

saved  is  clear. 

Reality  makes  no  allowances  for  wishes  or  bad  plans. 
246 


PAYMENTS  AND  LEGAL  TENDER. 


The  law  gives  the  debtor  who  owes  several  debts  to  the 
same  creditor,  the  right  to  apply  a  voluntary  payment,  at  the 
time  of  making  it,  to  whichever  debt  he  prefers.  If  the 
debtor  does  not  exercise  the  right,  it  passes  to  the  creditor ; 
and  if  neither  party  makes  an  application  of  it,  the  law  will 
apply  it  according  to  its  own  view  of  the  intrinsic  justice  and 
equity  of  the  case. 

Payment  of  debts  cannot  be  enforced  after  the  lapse  of  a 
certain  number  of  years,  which  are  specified  in  the  several 
States  in  what  are  called  the  statutes  of  limitations. 

STATUTE  LIMITATIONS  IN  THE  UNITED  STATES. 


*j 

a 

3 
a 

NAMES  OF  STATES. 

< 

0 

1 

e 

NAMES  OF  STATES. 

< 

0 

a 

no 

■ 

•o 

o 

■a 

a, 

o 

s 

Qt 

0 

s 

© 

K 

i-s 

O 

& 

>"3 

Yrs. 

Yrs. 

Yrs 

Yrs. 

Yrs. 

Yr^ 

Alabama, 

3 

6 

20 

Minnesota, 

6 

10 

Arkansas, 

3 

5 

10 

Mississippi, 

"3 

6 

7 

California, 

1 

4 

5 

Missouri, 

5 

10 

20 

Connecticut, 

6 

6 

17 

New  Hampshire, 

6 

20 

Delaware, 

3 

6 

New  Jersey, 

6 

16 

16 

Florida, 

5 

5 

New  York, 

6 

6 

20 

Greorgia, 

4 

6 

20 

North  Carolina, 

3 

3 

Illinois, 

5 

5 

20 

Ohio, 

6 

16 

Indiana, 

6 

20 

20 

Pennsylvania, 

6 

6 

20 

Iowa, 

... 

10 

20 

Rhode  Island, 

6 

6 

20 

Kentucky, 

i 

5 

15 

South  Carolina, 

4 

4 

.... 

Louisiana, 

3 

5 

... 

Tennessee, 

3 

6 

16 

Maine, 

6 

6 

20 

Texas, 

2 

4 

... 

Maryland, 

3 

3 

12 

Vermont, 

6 

14 

8 

Massachusetts, 

6 

6 

Virginia  (store  a/c  2y) 

5 

5 

20 

Michigan, 

6 

6 

Wisconsin, 

6 

6 

247 


248  PAYMENTS   AND    LEGAL    TENDER. 

In  some  States,  to  renew  the  obligation  and  take  the 
out  of  the  operation  of  the  statute  of  limitations,  it  is  neces- 
sary that  a  promise  to  pay,  or  acknowledgment  of  the  debt, 
be  made  in  writing;  in  others,  a  payment  made,  or  an  acknow- 
ledgment and  promise  to  pay  to  the  creditor,  in  the  presence 
of  witnesses,  is  sufficient. 

The  tender  of  payment  of  a  debt,  duly  made,  operates  in 
bar  of  any  claim  for  damages  and  interest,  and  also  in  bar  of 
the  costs  of  an  action  brought  to  recover  the  debt.  A  creditor 
who  refuses  a  tender,  sufficient  in  amount  and  duly  made, 
cannot  afterwards,  for  the  purpose  of  oppression  or  extortion, 
avail  himself  of  his  refusal.  The  debtor,  however,  remains 
liable  to  pay  whenever  called  upon. 

A  man  to  whom  payment  is  made  is  not  bound,  under 
ordinary  circumstances,  to  give  a  receipt  or  to  make  change. 

A  payment  made  to  the  proper  person,  in  "  lawful  money 
of  the  United  States"  is  indisputably  good. 

By  an  act  of  Congress,  the  payment  of  debts  with  coin  is 
regulated  as  follows  : — 

All  gold  coins,  at  their  respective  values,  for  any  amount. 

The  half-dollar,  quarter-dollar,  dime,  and  half-dime,  at 
their  respective  values,  for  debts  under  five  dollars. 

Three-cent  pieces,  for  debts  of  any  amount  under  thirty 
cents. 

The  one-cent  pieces,  for  debts  of  any  amount  under  ten 
cents. 

The  Treasury  notes,  called  "  greenbacks,"  are  also  a  legal 
tender. 

Bank  notes  are  a  good  tender,  unless  expressly  objected  to, 
if  the  bank  is  in  good  credit. 

A  payment  made  in  counterfeit  coin  or  notes  is  no  payment, 
if  the  receiver  gives  notice  to  the  payer  within  a  reasonable 
time  that  the  coin  or  notes  are  counterfeit. 

The  taking  of  a  promissory  note  for  a  pre-existing  debt,  or 
a  contemporaneous  consideration,  is  treated  prima  facie  as  a 


rAYMENTS  AND  LEGAL  TENDER.       249 

conditional  payment  only ;  that  is,  as  payment  only  if  it  is 
duly  paid  at  maturity. 

When  the  creditor  voluntarily,  having  free  choice,  and 
not  from  necessity,  accepts  the  promissory  note  or  bill  of  a 
third  person  for  a  pre-existing  debt,  the  debt  is  extinguished, 
though  the  security  may  prove  to  be  worthless. 

When  money  is  remitted  by  mail  to  the  creditor,  the  debt 
is  discharged  if  the  debtor  can  show  that  the  letter  contain- 
ing the  money  was  properly  mailed,  and  that  it  was  done  in 
accordance  with  the  express  direction  of  the  creditor,  or  a 
custom  from  which  such  authority  might  be  implied.  If  this 
can  be  shown,  and  a  loss  occurs,  it  is  the  loss  of  the  creditor;, 
if  otherwise,  it  is  the  loss  of  the  debtor. 

The  receiver  of  a  check,  if  he  receives  it  in  the  town  or 
city  where  it  is  payable,  should  present  it  for  payment  to 
the  bank  or  bankers,  at  the  farthest,  on  the  next  succeeding 
day  after  it  is  received.  If  payment  is  not  thus  demanded, 
and  the  bank  or  bankers  should  fail  before  the  check  is  pre- 
sented, the  loss  will  be  the  loss  of  the  holder. 

A  creditor  is  not  bound  to  accept  a  check  remitted  to  him, 
and  he  may  commence  a  suit  for  debt  even  while  the  check 
remains  in  his  hands. 

Money  paid  voluntarily  in  a  transaction,  with  full  know- 
ledge of  the  facts,  cannot  be  recovered. 

Interest  is  not  due  on  a  note  except  from  maturity,  unless 
it  is  so  mentioned  in  the  note. 

One  claim  may  be  set  off  against  another,  when  it  exists 
at  the  commencement  of  a  suit  and  in  the  claimant's  own 
right. 

When  part  of  a  claim  is  admitted,  the  debtor  should  ten- 
der the  amount  admitted ;  this  will  relieve  him  from  costs, 
if  the  disputed  portion  is  decided  in  his  favor. 


250  RECEIPTS. 


RECEIPTS. 

A  Receipt  is  an  acknowledgment  in  writing  that  a  sum 
of  money,  or  other  consideration  of  value,  has  been  re- 
ceived. A  receipt  is  evidence  of  a  payment  against  the 
person  who  signs  it,  and  is  a  voucher  used  by  agents  to 
prove  the  correctness  of  their  accounts.  It  is  also  evi- 
dence in  proving  facts  quite  distinct  from  the  payment 
stated  in  it. 

A  Simple  Receipt  is  merely  written  evidence  :  it  does  not 
exclude  verbal  evidence  of  payment;  and  upon  satisfactory 
proof  that  it  was  obtained  by  fraud,  or  given  under  error  or 
a  mistake  as  to  facts,  it  may  be  inquired  into  and  corrected  at 
law  or  equity. 

A  man  is  not  bound  by  law  to  give  a  receipt;  although,  by 
universal  custom  and  courtesy  of  business,  receipts  are  gene- 
rally given  when  desired.  When  refused,  the  facts  may  be 
proved  by  witnesses. 

A  full  and  complete  receipt  states, — 
That  a  payment  has  been  received. 
The  date  of  the  payment. 
The  amount  or  article  received. 

From  whom;  and  if  for  another,  on  whose  behalf  pay- 
ment is  made. 
To  what  debt  or  purpose  it  is  to  be  applied. 
By  whom  received;  and  if  for  another,  on  whose  behalf 
it  was  received. 
When  the  receipt  is  signed  by  the  very  person  to  whom 
the  payment  is  ultimately  to  go,  his  signature  is  sufficient. 
Where  the  receipt'  is  made  out  and  signed  by  an  agent,  he 
may  either  write  the  receipt  as  if  the  principal  himself  were 
to   sign   it,   then   write   his   principal's    name    underneath, 


RECEIPTS.  251 

and  his  own  name  below  his  principal's,  using  the  prefix 
"per"  or  "by,"  to  signify  the  agency,  in  the  following 
manner : — 

Received,  &c. 

Edward  M.  Sawyer, 

per  John  T.  Warren. 

Or,  he  may  draw  up  the  receipt  for  himself,  and  sign  it 
in  his  own  name,  mentioning  in  the  body  of  it,  however, 
that  he  received  the  money  "for"  or  "on  account  of"  his 
principal. 

The  first  form  is  more  suitable  for  an  agent  who  acts  as  a 
mere  messenger  to  take  the  money  and  is  not  authorized  to 
assume  any  responsibility  or  exercise  any  discretion  in  respect 
to  the  case.     Clerks  in  stores  are  of  this  class. 

The  last  form  is  suitable  for  an  agent  of  more  extended 
powers:  of  this  class  are  lawyers,  to  whom  collections  are 
intrusted. 

The  most  important  of  all  the  special  clauses  in  the  receipt 
is  that  which  defines  the  debt  or  purpose  to  which  the  pay- 
ment is  to  be  applied. 

Payments  upon  Account. — When,  for  want  of  time,  or  other 
circumstances,  a  payment  is  made  in  part,  or  with  the  inten- 
tion to  leave  the  application  of  it  to  future  adjustment,  it  is 
common  to  state  that  the  money  was  "received  on  account." 

Payments  upon  a  Specified  Debt. — When  a  payment  is 
made,  and  the  debt  intended  to  be  paid  is  clearly  distin- 
guished, the  receipt,  as  evidence  of  application,  can  only  be 
set  aside  by  proof  of  fraud  or  serious  mistake. 

Payments  in  full. — A  receipt  for  a  sum  "in  full"  of  a  debt 
mentioned  is  evidence  of  something  more  than  the  mere 
payment  of  that  sum.  The  law  infers  from  it  the  adjust- 
ment of  the  amount  due,  after  consideration  of  the  rights 
of  bflth  parties,  and  payment  of  the  sum  specified  as  final 
satisfaction  of  those  rights.      Receipts  liin  full  of  all  ac- 


252  RECEIPTS. 

counts"  do  not  affect  claims  which  are  not  properly  matters 
of  account.  Receipts  "in  full  of  all  demands"  prevent  any 
further  claim  for  any  demand  whatever,  existing  and  known, 
or  which  ought  to  have  been  known,  to  the  parties  at  the 
time,  unless  some  serious  or  excusable  mistake  can  be  shown. 

Payments  to  be  accounted  for. — As  the  law  presumes  that 
when  money  is  paid  it  is  paid  in  satisfaction  of  a  debt,  it  is 
desirable,  when  money  is  received  as  a  loan  or  deposit,  or  tc 
be  used  or  paid  out  for  the  benefit  of  the  party  paying  it,  to 
embody  in  the  receipt  an  admission  of  the  purpose  for  which 
it  is  received,  somewhat  as  follows  : — 

Received,  &c,  One  Hundred  Dollars,  to  be  repaid  with  in- 
terest; Received,  &c,  One  Hundred  Dollars,  to  be  accounted 
for,  or  returned;  Received,  &c,  One  Hundred  Dollars,  to  be 
expended  in  purchasing,  &c. 

Care  should  be  taken  in  drawing  a  receipt  when  the  trans- 
action involves  an  agreement,  because,  in  case  of  legal  con- 
troversy, no  explanation  inconsistent  with  its  language  can  be 
given. 

If  a  person  to  whom  a  note  is  offered  in  payment  consents 
to  receive  the  note  only  upon  the  understanding  that  if  it  be 
not  paid  when  due  he  shall  return  it  to  the  debtor  and  renew 
his  original  claim,  it  is  advisable  to  state  the  medium  of  pay- 
ment, and  that  u  when  paid"  it  will  be  in  full  satisfaction  for 
the  debt. 

A  check  made  payable  to  the  creditor's  order  is  equivalent 
to  a  receipt  for  the  amount,  as  the  money  cannot  be  obtained 
until  the  check  has  been  properly  indorsed. 

It  is  not  usual  to  take  a  receipt  on  paying  a  note,  draft,  or 
other  instrument  indorsed  by  the  payee,  because  the  instru- 
ment itself  with  the  indorsement,  is  returned,  and  thus  be- 
comes a  receipt. 

Partial  payments  indorsed  on  the  instrument  are  concise 
admissions  of  payment,  and  need  no  other  receipt.  Pajtial 
payments  of  a  bond  should  be  indorsed  on  the  bond. 


RECEIPTS.  253 

A  receipt  for  money  paid  to  an  estate  is  good  when  signed 
by  but  one  executor;  although  it  is  well  to  have  the  signature 
of  both. 

It  is  advisable,  when  payments  of  importance  are  made,  or 
disputes  are  apprehended,  to  take  receipts.  They  should  be 
kept  where  they  are  easy  of  access,  and  in  a  place  of  safety. 
When  not  in  a  receipt-book,  they  should  be  appropriately 
folded,  labelled,  and  filed. 

One  of  the  advantages  of  the  statutes  of  limitations  is,  that 
debtors  are  not  obliged  to  take  care  forever  of  documents 
or  vouchers  which  prove  that  a  demand  has  been  satisfied, 
and  a  limit  is  fixed  beyond  which  there  is  no  necessity  for 
producing  them. 

When  a  bill  which  is  receipted  is  retained  by  the  person  to 
whom  it  is  presented,  and  payment  is  not  made,  the  signa- 
ture at  the  foot  of  the  bill  should  be  torn  off  or  defaced.  If 
payment  is  refused  after  a  receipt  has  been  delivered,  evi- 
dence may  be  given  to  that  effect. 

Sealed  or  Special  Receipts. — The  Sealed  or  Special  Re- 
ceipt is,  in  general,  conclusive  and  absolutely  binding.  Deeds 
signed  and  sealed,  which  include  "the  receipt  of  which  is 
hereby  acknowledged,"  are  of  this  character.  (See  page  310.) 

FORMS  OF  RECEIPTS. 

RECEIPT   FOR   PAYMENT   ON   ACCOUNT. 

Received,  Philadelphia,  July  5,  1865,  from  S.  H.  Crittenden  & 
Co.,  Two  Hundred  and  Fifty  Dollars  on  account. 

$250.  Ringwalt  &  Brown. 

RECEIPT   IN    SETTLEMENT   OP   ACCOUNT. 

Philadelphia,  Nov.  11,  1866. 
Received  from  William  H.  Brown  One  Hundred  and  Twenty- 
Five  -fa  Dollars,  in  settlement  of  account  to  date. 

$125^.  James,  Kent,  Santee  &  Co. 

22 


254  RECEIPTS. 


RECEIPT   IN   FULL   OF   ALL   DEMANDS. 

St.  Louis,  Jan.  10th,  1S67.    Received  of  Henry  D.  Holmes  Ont 
Thousand  Dollars,  in  full  of  all  demands. 

$1000.  John  Andrews. 


RECEIPT   FOR   A   PARTICULAR   BILL. 

Rec'd,  Neio   York,  July  2d,  1866,  from  James  G.  Atwater,  One 

Hundred  and  Thirty-Five  T6a2jj  Dollars,  in  payment  for  a  bill  of 

Broadcloth  of  this  date.  * 

$1S5  6-2  .  A  T.  Stewart  &  Co., 

'        per  B.  J.  Yates. 


RECEIPT    FOR   A   NOTE. 

Baltimore,  May  7th,  1867. 

Rec'd  from  Messrs.  Watson,  Gray  &  Co.  their  Note  of  this 
date,  at  three  months,  our  favor,  for  Twelve  Hundred  and  Twenty- 
Five  tYjj  Dollars,  which,  when  paid,  will  be  in  full  for  account  ren- 
dered to  1st  instant. 

$1225  V  James  H  Johnson. 


RECEIPT   FOR   RENT. 

Bec'd,  Rochester,  March  6th,  1867,  from  Porter  K.  Smith,  One 
Hundred  and  Twenty-Five  Dollars,  in  full  for  one  quarter's  rent 
of  House  No.  10  St.  Joseph  St. ;  due  on  1st  inst. 

$125.  George  H.  Matthews,  Trustee. 


RECEIPT   FOR   INTEREST   DUE    ON   A   BOND. 

Received,  Boston,  September  18th,  1866,  of  Gilbert  Lawrence, 
One  Hundred  and  Eighty  Dollars,  in  full  for  six  months'  interest 
due  this  day,  on  his  Bond  to  me,  bearing  date  Sept.  18th,  186 '4,  for 
Six  Thousand  Dollars. 

aj^  John  W.  Thornton. 


RECEIPTS.  255 

RECEIPT   FOR   SERVICES. 

Reed,  Lowell,  June  13th,  I860,  from  Joseph  T.  Chester  &  Co., 
Ninety-Six  Dollars,  in  full  for  services  to  date. 

$96.  Henry  T.  Chase. 


INDORSEMENT    OF  A   PARTIAL   PAYMENT   ON   A   NOTE. 

Bec'd,  Phila.,  March  6th,  1867,  on  account  of  the  within  Note, 
Six  Hundred  Dollars. 
$qqq  Walter  H.  DeHaven. 


RECEIPT   FOR   PAYMENT   BY  THE    HAND    OF  A  THIRD  PARTY. 

Bec'd,  Memphis,  Dec.  SOth,  1864,  from  Leonard  W.  Bailey  & 
Co.,  by  the  hand  of  Samuel  Trumpler,  Four  Hundred  Dollars,  in 
full  for  proceeds  of  sales  of  Iron,  Invoice  bearing  date  of  Nov. 
10th,  1864. 

$100.  George  S.  Powell. 

RECEIPT   FOR   BORROWED   MONEY. 
(Or  Borrowed-Money  Due  Bill.) 
$300.  Syracuse,  Mar.  17th,  1865. 

Borrowed  and  received,  from  William  S.  Batch,  Three  Hundred 
Dollars,  which  I  promise  to  pay  on  demand,  with  interest. 

Daniel  S.  Browning. 

SHIPPING   RECEIPT. 

Albany,  Sept.  10th,  186U.  y  Albany,  Sept.  10th,  186U. 

Shipped  on  board   Q      Received  from  Charles  Sansom  &  Co.,  in 
good  order,  on  board  the  "  Isaac  Newton," 
*  bound  for  New  York,  the  packages  marked 
O  and  entered  as  below : — 


packages 


Marks. 

M.  T.     10  sacks  Garden  Seeds. 
Marks  ^      C.  H.     100  bbls.  Oswego  Flour. 

Bobert  L.  Brown,  Aft. 


256 


RECEIPTS. 


When  a  large  number  of  hands  are  employed,  or  when 
payments  to  a  large  number  of  persons  are  to  be  made,  it  is 
usual  to  have  forms  of  receipts  printed,  leaving  the  date  and 
amount  to  be  filled  according  to  circumstances;  or  a  large 
book  ruled  in  the  manner  shown  below.  Some  take  a  re- 
ceipt at  every  payment;  while  others  take  receipts  only  quar- 
terly, yearly,  or  at  other  stated  intervals,  or  when  business 
relations  are  dissolved,  and  then  in  full  to  date  of  receipt. 

The  following  is  a  convenient  form  when  a  large  number 
of  persons  are  paid  : — 

We,  the  undersigned,  do  hereby  severally  acknowledge  that  we 
have  received  from  Matthew  Baldwin  &  Co.  the  sums  set  opposite 
our  respective  names,  in  full  for  services  to  date. 


No. 

Date. 

Amount. 

Stamp. 

Signatures. 

1 
2 
3 

1865. 
July 

20 

Forty-Five  Dollars. 
Thirty-Seven  ^  Dolls. 
Twelve                      " 

45 
37 
12 

00 
50 
00 

CD 

Joseph  L.  Barrett. 
Thomas  P.  Jones. 
Samuel  G.  Brown. 

$94 

50 

FORM   FOR   DIVIDEND   LIST   OF  JOINT    STOCK   COMPANIES. 

We,  the  subscribers,  severally  acknowledge  that  we  have  received 
from  the  Treasurer  of  the  Saratoga  Fire  Insurance  Co.,  of  New 
York,  the  sums  set  opposite  our  respective  names,  in  full  for  Divi' 
dend  on  all  Stock  of  said  Company  held  by  us. 


NAMES. 

a 

m 

5 

56, 

u 

SIGNATURES. 

Chas  L.  Somers, 
Thos.  C.  Smith, 
Jos.  T.  King, 
Philip  S.  Hall, 

100 

50 

200 

150 

$40 
20 
80 
60 

$20 

1865. 
June 

15 

16 

Chas.  L.  Somers. 
Thos.  C  Smith. 

BOOK   ACCOUNTS.  257 


BOOK   ACCOUNTS. 

Entries  of  transactions  should  be  made  at  or  near  the  time 
of  their  occurrence. 

The  time  to  make  a  charge  against  a  purchaser  is  when 
the  goods  are  ready  for  delivery. 

Entries,  to  be  admissible  as  evidence,  should  be  made  by  a 
proper  person,  and  be  without  erasure,  alteration,  or  inter- 
lineation. 

Mistakes  should  be  corrected  by  marking  the  erroneous 
entry  void,  and  then  making  a  correct  entry ;  or,  if  the  entry 
has  been  transferred  to  other  books,  by  making  another  entry 
in  explanation. 

Items  and  particulars  should  be  specified,  as  a  general 
charge  cannot  be  supported  by  this  kind  of  evidence.  The 
entry  must  be  made  for  the  purpose  of  charging  the  debtor ; 
a  mere  memorandum  for  any  other  purpose  is  insufficient. 

As  a  general  rule,  copies  of  all  important  papers,  such  as 
letters,  orders,  accounts  current,  and  account  sales,  should  be 
kept,  as  they  may  be  required  for  proof  or  reference ;  but, 
usually,  a  copy  is  not  a  voucher,  and  nothing  but  the  original 
paper  will  answer. 

To  collect  a  debt  on  the  evidence  of  a  book  account,  from 

a  person  in  a  distant  place,  a  copy  of  the  account  should  be 

made  out,  and  accompanied  with  an  affidavit  in  the  usual 

form,  setting  forth : — 1st,  that  the  above  copy  of  account  is 

correctly  taken  from  the  book  of  original  entries ;  2d,  that  the 

charges  were  made  at  or  about  the  times  of  their  respective 

dates;  3d,  that  the  goods  were  sold  and  delivered  at  or  about 

the  time  the  charges  were  made ;  4th,  that  the  charges  are 

correct  and  the  account  just;  and,  5th,  that  the  person  named 

is  not  entitled  to  any  credits.     This  affidavit  should  be  sworn 

to  before  a  magistrate  or  commissioner,  and  will  save  the 

trouble  of  producing  the  books.    (See  Affidavit,  page  315.) 
R  22* 


258 


FORMS   OF   BILLS. 


BILLS,   INVOICES,  AND  STATEMENTS. 

A  Bill  is  a  written  description  of  particulars  or  items. 

A  Bill  op  Goods,  or  Bill  of  Parcels,  is  a  description 
of  the  quantity  and  price  of  goods  sold,  with  the  time  of  the 
transaction  and  the  names  of  the  purchaser  and  seller. 

An  Invoice  is  a  full  account  of  goods  or  merchandise, 
in  which  the  marks,  numbers,  contents,  and  value  of  each 
package  are  described,  together  with  the  charges  for  commis- 
sion, insurance,  packing,  &c. 

A  Statement  is  a  synopsis  of  an  account,  or  a  brief  enu- 
meration of  bills  which  have  been  purchased  within  a  certain 
time.  Some  mercantile  houses  send  statements  monthly,  or 
at  other  regular  periods,  to  their  customers  who  purchase 
on  credit,  that  a  comparison  of  account  may  be  made,  and, 
that  if  any  error  exists,  it  may  be  remedied  in  time. 


1.  Bil 


FORMS  OF  BILLS. 

unreceipted. 


Mr.  Henry  L.  Stone, 


Rochester,  March  18, 1867. 


Bought  of  George  S.  Thompson. 

10  lbs.  Java  Coffee,                                 @      .40 
5    "    Green  Tea,                                     "      1  20 
12    "    Brown  Sugar,                                "        .14 
25  yds.  Muslin  (Wamsutta),                    "  .    .23 
17    "     Flannel,                                         "        .46 

1  doz.  Linen  Hdkfs., 
12  yds.  Mous.  de  laine,                            "       .20 

4 
6 

1 
6 
7 
3 
2 

00 
00 
68 
75 
65 
00 
40 

$30 

48 

FORMS    OF    BILLS. 


259 


2.  Bill  receipted  by  Firm. 

New  Orleans,  December  26,  1866, 
To  B.  H.  Fenton  &  Co.,        Br. 


Mr.  J.  J.  Bibb, 


To  48  yds. 
"  12     " 

II     10        II 

"  20     " 
u     7     u 

"    2  doz 
ii     !     «< 

"     3^  yds 

Muslin,                              @       .22 
Drilling,                              "        .18 
Gingham,                            "        .35 
French  Chintz,                   M        .40 
Broadcloth,                        "      3.25 
Spools  Thread,                  "        .75 
Linen  Napkins,                  "      2.00 
.  French  Cassimere,          "      1.90 

Rec'd  payment, 

B.  H.  Fenton  &  Co. 

3.  Bill  receipted  by  Cleric. 

{    ShiPI 
(  buyer' 


J    Shipped  at    ) 
r's  risk.  J 


Chicago,  Feb.  19, 1867. 
Messrs.  H.  H.  Applegate, 

Teems,  Note  at  60  days.  To  JAMES  HARRIS  SON  &  Co.    Dr. 


820 

25  boxes  Cheese,    82     738,                   @     .12 

$88 

56 

10  bags  Flaxseed, 

1200  —  11=1195  lbs.     21|fbus.,  "    3.00 

64 

02 

2  bbls.  Eggs, 

141  —6  =  135  doz.,                  "     .25 

33 

75 

3  kegs  Butter, 

295  — 31  — 6  =  258  lbs.,          "     .35 

90 

30 

5  tierces  Leaf  Lard, 

1620  — 271  =  1349  lbs.,           "     .21 

283 

29 

$359 

92 

Rec'd  payment. 

STAMP 

James  Harris,  Son  &  Co., 
per  L.  M.  Wilson. 

260 


FOKMS   OF   BILLS. 


4.  Bill  receipted  by  Clerk. 


Mr.  Seth  W.  Osborn, 


Philadelphia,  llmo.,  7, 1867. 


0.  B.  55,  page  150. 
Terms,  L  months. 


Bought  of  J.  M.  &  T.  H.  Saunders. 


Packages 

Nos. 

365 

20 

" 

16 

" 

12 

■ 

21 

• 

17 

1320 

1350 

1216 

1301 

doz.  Men's  Blk.  Cassr.  Hats,  @  $24.00 

"        "         "     Wool     "  •'  18.00 

"    Boys' Drab      "         "  ■  15.00 

"    Child's  Fancy  Wool  Hats,  "  15.00 

"    Men's  White*  Canton  Hats,  "  13.50 

prs.  Women's  Calf  Pegged  Boots,  "  2.25 

"     Misses'        "         "        Balmorals,  "  1.15 

"    Women's  Morocco  Welt      «  ■  2.10 

"  Child's  Kid  Pump  Boots,  "  60 
2  Cases, 


Received  payment, 

J.  M.  &  T.  H.  Saunders, 

per  J.  L.  Gurnet. 


$48 

108 

45 

45 

40 

135 

110 

75 

21 

1 


50 


5.  Bill  paid  by  Note. 

Please  examine  Packages  carefully  for  Missing  Articles. 

New  York,  January  13, 1867. 
Messrs.  Geo.  W.  McWilliams  &  Co., 
o.  b.  4,  page  75.  Bought  of  Fisher  &  Collins. 


2          4         1 

7 

Doz.  EdgM  Muffins,    1.00,    1.20,    1.35, 

8 

15 

2 

Sets  W.  Gran.  Tea  Seta,  46  ps.,  @  $8.50, 

17 

00 

2 

1         1 
Doz.  Mocco.  Pitchers,    4.50,    7.00, 

11 

50 

6 

"    Table  Tumblers,  @  1.25, 

7 

50 

50 

10      15        10        10         5 
■    W.  Gran.  Dishes,     50,    1.00,    1.50,    2.00,    3.00, 

70 

00 

20 

Sets      M           Teas,  @  1.10, 

22 

00 

I* 

ill 
Doz.  Edg'd  Bakers,      2.00,    4.50,    6.00, 

4 

75 

2  00              25                              60 
Crate,    '       Box,         and  Porterage, 

2 

75 

$143 

65 

Rec'd  payment  by  Note  at  I  mos., 

STAMP 

Fisher  &  Collins. 

6. 


Mr.  James  L.  Bushton, 


FORMS   OF   BILLS.  261 

Bills  for  Services,  &c. 

Worcester,  July  7, 1867. 


To  Frederick  T.  Stone,   Dr. 


1867. 

Jan. 

7 

CI 

20 

May 

10 

For  Profsssional  Services  in  Family, 
"  5  visits  to  sou,  Charles  Rushton, 
"    3     "      "    "     Henry  L.  Rushton, 


$10 
5 
3 


$18 


Mr.  John  H.  Wagner, 


Buffalo,  August  19, 1866. 
To  Wm.  H.  Turner,    Dr. 


May     11 


For  Repairing  House,  as  per  Contract, 
"    800  feet  Pine  Boards,  @  $8, 
"    Lock  and  Key  for  door, 
"    Nails,  Hooks,  &c, 


Received  payment, 

W.  H.  Turner. 


$25 


$34 


8. 
Mr.  Owen  T.  Jones, 


Chicago,  July  S,  1866. 
To  Henry  G.  Langdon,    Dr. 


For  Instruction  of  son,  William  T.  Jones, 

in  English  branches,  3  mos.,  $15.00 

in  Latin,  "  20.00 

"    Instruction  of  daughter,  Louisa  J.  Jones, 

in  English  branches,  3  mos.,  $15.00 

in  Music,                        "  15.00 

"    Use  of  Piano,  10.00 

"    Books  and  Stationery  furnished  during  the  Term, 

Received  payment, 

Henry  G.  Langdon, 

per  S.  Y   Lanodon. 


$35 


$78 


00 


262 


FORMS   OF   INVOICES. 


9.  Items  of  an  Account. 
Mr.  S.  B.  Morehouse, 


Mechanicsville,  Jan.  1, 1867. 


To  0.  Tompkins  &  Co. 


Dr. 


1866. 
Apr. 
May 
June 
Sept. 

5 

9 

16 

14 

5 
10 
11 

To    5  bbls.  Genesee  Flour,  extra, 
"  10  lbs.    Pearl  Starch, 
"  20  "      English  Breakfast  Tea, 
"     2  bbls.  Prime  Pork, 

Cr. 

By  17  yds.  English  Broadcloth,        @  $3.00, 
"   25    "     French  Chintz,                   "       .40, 
"   12   ■     English  Bea\er  Cloth,     "    3.00, 

Balance  due, 

Settled  by  due-bill, 

O.  Tompk 

@  $15.00 

.18 

"      2.25 

"    17.50 

$51.00 
10.00 
36.00 

$75 

1 

45 

35 

00 
80 
00 
00 

May 
July 

$156 
97 

so 

00 

INS  &  Co. 

$59 

80 

INVOICES— DRY   GOODS. 

Cincinnati,  Jan.  17, 1867. 
Messrs.  Leonard  &  Curtis, 

BoH  of  Joseph  Cushing  &  Co. 

Terms,  3  mos.    Note  to  your  own  order. 


L.  AC. 

304 
312 
540 

17 

2  cases  Merriraac  Prints,  80  ps.,  2804  yds.,    @     .17 

1  case  Satinets,  450  yds.,                                   "      .78 

5  ps.  Extra  Black  Cassimere,  120  yds.,           "  $2.75 

10  "   Satin  Stripe  Muslin,        200    "               "    1.30 

137 

40  Check  Square  Shawls,                                    "    2.13 

* 

15 

6  Imperial  Long      "                                            "  11.00 

801 

3  ps.  Solferino  Opera  Cloth,  90  yds.,               "      .85 

4267 

12  Ladies'  Mourning  Long  Shawls,  60  X  120,  "    9.00 

No.  1 

2  ps.  Taffeta  Ribbons,                                         "     1.50 
5  "   Buff  Chambrays,  155  yds.,                       «      .42 

142 

2  "   Printed  Plaid  Flannel,  90  yds.,               "      .52 

B.C. 

46 

15  "   Plain  Mousseline  de  Laines, 

metres  674.1  =  730|  yds.,                    "      .28£ 

Rec'd  payment, 

Jos.  CusniNG  &  Co., 

per  L.  R.  Taylor. 

MONTHLY    STATEMENT. 


263 


Invoice  of  two  packages  of  Merchandise  purchased  by  W.  B.  Long- 
worth  &  Co.,  and  forwarded  to  B.  G.  Babcock,  Liverpool,  for 
shipment  per  "Kangaroo"  S.S.,  bound  for  New  York,  for  ac- 
count and  risk  of  Messrs.  Homer,  Colladay  &  Co.}  Phila- 
delphia, and  to  them  consigned. 


#31 


(743 


100 

TZ¥¥ 
2301 
2302 


56  Fancy  Wool  Long  Shawls, 

yds. 
Cases,  Packing,  Oil-Cloth,  &c. 


"  "      Square 

7"f  ¥  Broche  Borders, 


af  Fancy  Wool  Long  Shawls, 
<t  d  «  « 

Case,  Packing,  &c. 

Discount  on  £241 14s.  id.,  @  2i, 

Charges,  Cartage,  1/6,  Commission 
1£  per  cent.,  £3  lis.  4d., 

Cash,  1st  Sept.  1866, 
E.E. 

Glasgow,  11th  August,  1866. 

W.  B.  LONGWOETQ  &  CO. 


Other  invoices  may  be  found  under  Profit  and  Loss. 


£ 

s. 

d. 

70 
18 
■12 

24/- 

17/- 
9/- 

84 
U 

5 

6 

8 

200 

1/- 

10 

200 
200 

10K 

8 
8 

15 
13 
19 

4 
10 

131 

2 

72 
48 

23/- 
12/- 

82 
28 

16 
16 
19 

6 

112 

11 

243 
6 

13 

237 

12 

3 

12 
5 

£241 

MONTHLY  STATEMENT. 


Pmrffclg  Statement. 

Boston,  Jan.  31,  1867. 
Messrs.  B.  H.  Bradford  &  Co., 

To  A.  A.  Lawrence  &  Co.        Dr. 


1867. 

Jan. 

« 

M 

4 
17 

26 
29 

To  Mdse.,  as  per  Bill  rendered,  @    3  months, 

H            M                       M                       «                «       3            « 

■        *               ■               «          "  60  days, 
»' •     "              "              *         f     3  months, 

$75 
132 
318 
123 

00 

00 
00 
75 

$648 

75 

264  BILLS   OF   LADING. 


BILLS   OF  LADING. 

A  IJill  of  Lading  is  a  formal  receipt  subscribed  by  the 
master  of  a  ship,  or  other  common  carrier,  acknowledging  the 
receipt  of  goods  intrusted  to  him  for  transportation,  and  bind- 
ing himself,  under  certain  exceptions,  to  deliver  them,  in  like 
good  condition  as  received,  at  the  place  and  to  the  person 
named  in  the  bill,  or  his  assigns,  for  a  remuneration  or 
freightage.  The  bill  of  lading  is  the  evidence  of  shipment 
and  the  title  to  the  goods  shipped,  and  may  be  indorsed  or 
transferred  to  other  parties. 

Three  sets  are  usually  made  out :  one  to  be  sent  to  the 
person  to  whom  the  goods  are  consigned,  one  for  the  person 
shipping  the  goods,  and  a  third  to  be  retained  by  the  carrier, 
or  master  of  the  vessel.  The  bills  of  lading  contain  a  descrip- 
tion of  the  packages  shipped,  including  their  number,  marks, 
weights,  &c. 

Common  Carriers  are  those  who  hold  themselves  out  to  carry 
all  goods  intrusted  to  them,  or  all  goods  of  a  particular  kind.  They 
are  of  two  kinds, — inland  carriers  by  land  or  water,  and  carriers  by 
sea.  They  are  answerable  for  all  losses  which  do  not  fall  within 
the  excepted  cases  of  inevitable  accident  and  the  acts  of  the  public 
enemies  of  the  country.  The  carrier  may  limit  his  responsibility  by 
agreement  with  his  customer ;  but  he  cannot  exempt  himself  by 
notice  or  agreement  from  responsibility  for  actual  negligence.  He 
has  a  lien  on  the  goods  carried,  and  may  retain  them  until  he  has 
been  paid  his  freight. 

Primage  is  an  allowance  made  for  loading  the  goods.  The  term 
"Average"  refers  to  general  or  marine  average,  in  which,  if  loss 
si  vise  during  the  voyage,  the  cargo  is  required  to  bear  a  propor- 
tionate share. 

A  Manifest  is  a  list  containing  the  marks,  description,  and  num- 
ber of  packages  of 'the  ship's  cargo,  together  with  the  names  of  the 
shippers  and  consignees,  and  must  be  certified  by  the  master  of  the 
vessel  before  the  collector  of  customs,  or  the  consul. 

A  Consul  is  an  officer  appointed  by  Government  to  reside  in  a 
foreign  country,  for  the  purpose  of  protecting  the  commercial  in- 
terests of  the  subjects  of  his  own  nation.  Documents  of  any  kind 
attested  by  the  consul,  under  his  hand  and  seal  of  office,  are  ad- 
mitted as  evidence  in  courts  of  justice. 


BILLS    OF    LADING. 


265 


BILL    OP   LADING,  SIGNED   BY    MASTER    OF   VESSEL. 


In  good  order  and  well-conditioned,  by  B.  Gal- 
laway,  Jr.,  as  Agent,  in  and  upon  the  good  ship 
called  the  Kathleen,  whereof  is  Master  for  this 
present  voyage,  U.  E.  Roberts,  and  now  riding 
at  anchor  in  the  river  Thames,  and  bound  for 
Philadelphia,  via  Falmouth,  Eighteen  Bales 
Merchandise,  being  marked  and  numbered  as 
in  the  margin,  and  to  be  delivered  in  the  like  good 
order  and  well-conditioned,  at  the  aforesaid  Port 
of  Philadelphia  (the  act  of  God,  the  Queen's  ene- 
mies, fire,  and  all  and  every  other  dangers  and  acci- 
dents of  the  seas,  rivers,  and  navigation,  of  whatever 
nature  and  kind  soever,  excepted),  unto  Mr.  Porter 
Morgan,  Philadelphia,  or  to  his  assigns,  he  or 
they  paying  freight  for  the  said  goods,  £5  lis.,  in 
full.     Primage  and  Average  accustomed. 

|n  Witness  whereof,  the  Master  or  Purser  of  th«3 
said  Ship  hath  affirmed  to  three  Bills  of  Lading, 
all  of  this  tenor  and  date,  the  one  of  which  Bills 
being  accomplished,  the  others  to  stand  void. 

Weight  and  contents  unknown;  and  not  accountable  for 
leakage,  breakage,  or  rust.  Freight  payable  at  the  current 
rate  of  exchange  on  the  day  the  ship  enters  at  the  Custom-Houae. 


P.M. 
P. 


18  Bales. 


#  1/18- 


Rate  20/-. 

£  *. 

Freight,    5  5 

Primage,  5 


£5  lis. 


Dated  in  London,  this  23d  day  of  Dec,  1865. 
Contents  unknown. 


U.  E.  Roberts, 

Master. 


BILL   OP   LADING   SIGNED   BY   CLERK   OP   R.  R.  CO. 


Camden  &  Amboy  Kailroad  and  Transportation  Company. 

Philadelphia,  Feb.  24-y  ?860. 

gmibeb,  of  Messrs.  Barclay  &  Barclay, 

30  casks  Linseed  Oil, 
Marked:— H.  L.  T.—%  1  to  30. 

To  be  transported  to  New  York,  and  delivered  to 

Mr.  H.  L.  Turner,  or  order,  upon  the  following 

TERMS: 
[Here  the  conditions  are  inserted.] 

W.  P.  Murphy, 

For  the  Company. 

23 


266 


BILLS   OF   LADING. 


STEAMBOAT   BILL   OF   LADING. 

|lmifab  by  the  Wilmington  Steamboat  Line,  in  apparently 
good  order,  from  H.  Y.  Heald,  marked  and  entered  as  below  (con- 
tents unknown),  which  we  promise  to  deliver  at  Wilmington  (breakage 
and  leakage  excepted),  and  not  being  responsible,  if  lost,  stolen,  or 
damaged,  beyond  the  value  of  Fifty  Dollars  per  package. 

1  Case  Merchandise. 
Marked  : — George  Danby, 

Wilmington,  Del. 


Philadelphia,  Jan.  19,  1867. 


P.  T.  Simpson,  Agent. 


FREIGHT    BILL. 

POEM  No.  69.-SERIES  B. 

No.  12118.  Philadelphia,  JVor.  83  /S6t 

Mr.         Robert  B.  Stewart, 

To  PENNSYLVANIA   R.  R.  CO.      Dr. 
For  Freight  from Mill  Creek on 


3  boxes  Apples, 

4  "      Mdse., 


Weight. 

Rate. 

Freight. 

Expenses. 

Total. 

1935 
1450 

56 
60 

10 

8 

83 
70 

57 
50 

11 
9 

i 

$20 

( 

Rec'd  payment  for  the  Company, 

Thos.  Y.  Murray. 

WAREHOUSE   RECEIPT. 

Syracuse,  June  fS,  /S&7. 
Delivered  to  John  Cottrell  &  Co.,  in  good  order,  for  which 
they  have  paid  the  charges  thereon. 


Marks. 

Articles. 

Quantity. 

Charges. 

J.  C.  &  Co. 
X.  L. 

#  1  to  20 

#  20  «  30 

Oswego  Flour,  extra, 

Coin  Starch, 

Freight  from  Oswego, 
Drayage,  Storage,  &c, 

T.  &  L.  Mosier. 

20  bbls. 

10      ". 

1 

3 

$4 

50 

00 

50 

ACCOUNT    SALES.  267 


ACCOUNT  SALES. 

An  Account  of  Sales  is  a  detailed  statement  of  gooda 
sold  and  the  charges  incurred  thereon,  and  is  made  for  the 
purpose  of  showing  the  net  proceeds  of  sales.  When  goods 
have  been  sold  on  commission,  the  agent  or  commission  mer- 
chant makes  out  an  account  sales,  to  be  sent  to  the  consignor, 
or  person  for  whom  the  goods  were  sold. 

Account  Sales  are  made  out  in  various  forms ;  that  form 
being  used  which  is  most  convenient  for  the  branch  of  busi- 
ness in  which  it  is  used.  Sometimes  they  are  made  out  in 
the  form  of  a  ledger  account ;  the  quantity  of  goods  sold,  with 
their  marks,  prices,  &c,  being  entered  on  the  credit  side,  and 
the  various  charges  on  the  debit  side.  The  difference  between 
the  two  sides  exhibits  the  net  proceeds,  and  is  entered  on  the 
smaller  side,  to  produce  a  balance. 

Another  form,  and  the  one  which  is  generally  adopted,  is  to 
enter  the  sales,  with  all  the  particulars,  first,  and  the  charges 
underneath. 

"When  the  goods  are  not  all  sold,  a  minute  of  those  still  on 
hand  should  accompany  the  account  sales. 

To  make  out  an  account  sales,  turn  to  the  consignment 
account  in  the  ledger,  and  from  thence  to  the  original  entries, 
to  obtain  all  the  items  affecting  the  account.  When  the  goods 
are  sold  for  cash,  or  when  the  consignor  guaranties  the  sale,  it 
is  not  necessary  to  give  the  names  of  the  purchasers;  although 
this  is  frequently  done. 

A  del-credere  commission,  or  guaranty,  is  a  commission 
charged  for  becoming  responsible  for  the  debts  of  those  who 
purchase  the  goods  on  credit. 

Account  Sales  are  averaged  to  find  the  date  when  the  pro- 
ceeds may  be  paid  without  loss  of  interest  to  either  party, 
(See  A.verage  of  Accounts.) 


268 


ACCOUNT    SALES. 


Sales  of  \  200  bus.  wjeat,  j  reccived  per  Barque  Aurora,  for  Account 


150  bbls.  Flour, 

of  James  T.  Hoyt,  Berlin, 


Aid. 


To  whom  sold. 

Description. 

Price 

1866. 

Dec. 

19 

Jefferson  Andrews, 

25  bus. 

Ohio  Wheat, 

1.15 

$28 

75 

1867. 

Jan. 

5 '  R.  J.  Long, 

50  bbls. 

Elm  Grove  Fam.  Flour, 

9.50 

47 

50 

" 

8    Chas.  S.  Brown, 

100  bus. 

Kentucky  Wheat, 

1.20 

120 

00 

" 

13 

L.  S.  Harris  &  Co., 

20     " 

Ohio 

1.18 

28 

w 

" 

" 

" 

75  bbls. 

Oregon  Fam.  Flour,  Ex., 

8.50 

637 

50 

u 

25 

Henry  G.  Stone  &  Co. 

55  bus. 

Ohio  Wheat, 

1.10 

55 

00 

M 

« 

25  bbls. 

Flour,  Grant's  Mills, 

11.00 

275 

00 

§1187 

35 

Charges. 

Freight  and  Drayage,                                                     $45.00 

Insurance  on  $1000,  @  1£  per  cent.,                               12.50 

Storage  and  Labor,                                                               7.25 

Commission  and  Guaranty, 
Net  Proceeds  due  j 

5  per  cent,  on  1187.35,       59.37 

124 

12 

>er  average, ,  1867, 

$1063 

23 

Leonard  B.  Hudson. 

New  York,  Jan.  28, 1867. 

Account  Sales  of  75  Bales  of  Wool  received  per  Pennsylvania  Bail- 
road,  and  sold  for  Account  of  Messrs.  Smith  &  Williams, 
Salem,  Columbiana  Co.,  Ohio. 


1866. 
Nov. 

10 

Three-quarter  blood  Merino  Fleece, 

Net  9238  lbs.,  @  60c,                          30  days, 

5542 

80 

Dec. 

15 

Half-blood  Merino  Fleece, 

Net  2638  lbs.,  @  55c,                                " 

1450 

90 

1867. 
Jan. 

5 

Unwashed  Merino  Fleece, 

Net,                 240 

i  discount,        80    160  lbs.,  @  55c,  30  days, 

Common  and  quarter-blood  Fleece, 

Net  985  lbs.,  @  50c,                           30  days, 

88 
492 

00 

50 

$7574 

20 

Charges. 

Freight  and  Drayage,                                      $192.33 

Commission,  including  Insurance,  Storage, 
and  Labor,  2  cents  per  lb.  on  13,101  lbs.,       262.02 

Net  Proceeds  due  Dec.  22, 1866, 

454 

35 

$711 9_ 

85 

E.  E.                                     Thaw  &  Walker. 

Philadelphia,  Jan.  10, 1867. 

ACCOUNTS    CURRENT.  269 


ACCOUNTS   CURRENT. 

Accounts  Current  are  statements  in  detail  of  accounts 
which  have  been  open  or  running  from  one  time  to  another. 
They  are  usually  made  out  twice  a  year,  or  whenever  circum- 
stances require,  by  the  parties  desiring  settlement. 

The  object  of  an  Account  Current  is  to  furnish  the  person 
to  whom  it  is  sent  a  statement,  that  he  may  know  the  extent 
of  his  dealings,  and  what  balance  may  be  due  from  him  to 
settle  his  account. 

Accounts  Current  are  drawn  from  the  accounts  in  the 
Ledger,  with  which  they  must  agree,  and  should  contain  a 
description  of  every  transaction,  with  date,  items,  and 
amounts,  as  expressed  in  the  books  of  original  entry,  allow- 
ing for  the  difference  of  style.  .When  particulars  are  not 
supplied,  reference  should  be  made  to  the  entries  or  papers 
in  which  they  may  be  found.  Interest  is  allowed,  or  not, 
according  to  custom  or  the  understanding  between  the  par- 
ties. The  time  for  which  interest  is  calculated  is  counted 
from  the  date  when  the  amount  is  due,  or  equivalent  to  cash, 
to  the  date  of  settlement.  For  the  different  methods  of  cal- 
culating the  interest,  see  Interest  Accounts.  Accounts 
Current  are  sometimes  averaged  as  in  Average  of  Accounts. 

If  there  are  errors  in  an  Account  Current  received,  it 
shoald  be  objected  to  within  a  reasonable  time,  or  it  becomes 
an  Account  Stated,  which  does  not  require  a  proof  of 
items. 

The  letters  E.  E.  and  E.  0.  E.,  appended  to  invoices  and 
accounts,  are  for  the  purpose  of  intimating  the  right  of  cor- 
recting errors  or  of  supplying  omissions. 

For  additional  Accounts  Current,  see  pages  91  and  94  ; 
and  for  finding  interest  on  English  Accounts,  see  Interest 
in  England. 

23* 


270 


ACCOUNTS   CURRENT. 


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ORDERS.  271 


ORDERS. 


An  Order  is  a  written  request  to  deliver  money  or  goods  to 
some  person  mentioned,  or  to  his  order,  or  to  the  bearer,  on 
account  of  the  person  signing  the  request.  It  is  used  by  the 
person  receiving  it  as  a  voucher  that  the  person  signing  it  is 
responsible,  and  that  the  thing  or  things  mentioned  have 
been  delivered.  Orders  may  be  made  negotiable;  but  the 
persons  on  whom  they  are  drawn  are  not  under  obligation  to 
pay  them  unless  they  have  been  accepted. 

ORDERS   FOR   MONEY. 

Lancaster,  Aug.  16,  1867. 
Mr.  James  T.  Fordley, 

Please  pay  to  M.  B.  Brown,  or  order,  One  Hundred 
Dollars,  and  charge  to  our  account. 

$100.  Jos.  W.  Andrews  &  Co. 


Messrs.  Alfred  Slade  &  Co. 

Gentlemen: — Please  pay  to  Thomas  Brown,  or  order,  Thirty 
Dollars,  due  on  my  account,  and  oblige 

Yours,  respectfully, 
Philada.,  Aug.  12,  1866.  Robert  H.  Jenkins. 


ORDERS   EOR   GOODS. 

Baltimore,  Feb.  19,  1867. 
Mr.  William  B.  Linden, 

Please  pay  to  Andrew  B.  Jones,  or  bearer,  Sixty  Dollars 
in  Goods  from  your  store,  and  place  to  account  of 

Henry  W.  Wilkins. 

Albany,  Mar.  25,  1867. 
Mr.  Charles  Riqua, 

Please  send  me,  per  bearer,  Ten  Barrels  Flour,  Genesee 
Extra,  and  oblige 

Yours  truly,  Henry  Burnham. 


272  CHECKS. 

Day,  on,  0.,  August  16,  1866. 
Messrs.  L.  A.  Tiers  &  Son, 

New  York 

Dear  Sirs : 

Please  send  immediately  Five  (5) 
Half- Chests  Imperial  Tea,  Hugo  &  Otto,  #7,  as  per  sample  sent  us, 

and  oblige  Yours,  truly, 

Corbin  &  Walworth, 

St.  Louis,  Jan.  3,  1867. 
Messrs.  Eldredge  &  Brother, 

Philadelphia,  Pa. 
Gentlemen  :  —  Please  send  us,  per  Adams  Express, 

50  Chase  and  Stuart's  Caesar's  Commentaries. 
50        do.  do.      Virgil's  Aeneid. 

36  Mitchell's  Elocution. 
50  Webb's  Model  Etymology. 
25  Hart's  In  The  School-Boom. 
Upon  receipt  of  your  Bill,  with  Goods,  we  will  remit  by  Draft  or 
Express,  as  you  may  direct. 

Respectfully,  yours, 

A.  B.  M.  Thompson  &  Co. 


CHECKS. 


A  Check  is  a  written  order  or  request,  addressed  to  a  bank 
or  banker,  by  a  person  having  money  deposited,  requesting 
the  payment,  on  presentment,  of  a  certain  sum  of  money  to  a 
person  therein  named,  or  to  his  order,  or  to  the  bearer. 

When  drawn  payable  to  a  person  or  bearer,  it  is  transferable 
without  indorsement,  and  the  holder  is  entitled  to  payment ; 
when  drawn  payable  to  a  person  or  his  order,  it  must  be  in- 
dorsed by  the  person  to  whom  the  check  is  made  payable ; 
when  made  payable  to  a  person  without  the  words  "  or  order," 
or  "  bearer,"  or  to  a  particular  person  "  only,"  it  is  not  nego- 
tiable. 


CHECKS.  273 

As  checks  made  payable  to  a  person  I  order  compel  the 
payee  to  indorse  them,  they  are,  when  drawn  in  this  form, 
often  used  in  lieu  of  receipts. 

The  drawer  of  a  check  may  countermand  its  payment  at 
any  time  previous  to  its  payment  or  acceptance  by  the  bank. 

A  check  received  from  others  should  be  presented  without 
unnecessary  delay,  as  the  drawer  will  not  otherwise  be  respon- 
sible for  its  payment  in  case  of  the  failure  of  the  bank. 

Every  holder  of  a  check  is  liable  to  every  subsequent 
holder  only  for  the  time  for  which  he  would  be  held  if 
originally  liable. 

A  post-dated  check  is  payable  on  the  day  of  its  date;  but, 
as  circumstances  may  arise  that  will  render  void  a  check 
drawn  with  a  date  in  the  future,  some  prefer  dating  the 
check  with  the  day  on  which  it  is  drawn,  and  stating  in  the 
body  of  the  check  the  day  when  it  is  to  be  paid. 

When  made  payable  on  a  future  day  mentioned,  different 
from  that  of  the  date,  they  have  been  treated  as  bills  of  ex- 
change, and  as  such  are  entitled  to  days  of  grace,  and  require 
revenue  stamps,  the  same  as  bills  of  exchange. 

The  amount  of  a  check  should  always  be  written  out  in 
words.  The  amount  in  figures  is  placed  in  the  corner,  that 
the  sum  for  which  the  check  is  drawn  may  be  seen  at  a 
glance,  and  also  as  a  precaution  against  any  alteration  which 
might  be  made. 

CHECK  PAYABLE  TO  BEARER. 


|  8TAMP>  |   $«■  7.  Cincinnati,  $_ug.  16,  1S67. 

Jfirst  ftitihmal  flank, 

xsau  vo e=~Jcvwu€e£   yrra/lcHie> oi  cvealel, 


274 


CHECKS. 


r.  127. 


Baltimore,  JFov.  22,  1865. 


\t  Itaiiatral  wnnk  ni  mv&tiwwct, 

IjsSo ^«^  <=&>.  JSSk 


.&—  J&Zctndled and <=^ew»4 y3^     <2$o/&i<f. 


fVOtfv 


v.    ^f.    extant. 


CHECK   PAYABLE    AT   A    FUTURE    TIME. 


r^T]  »°*  m'  F™  TorTc,  J£ar.  13,  1867. 

Mtxtionnl  %ntk  %nnht 


on-  &ne 

$800. 


JfaU  JS?.   Jfifcfa  oi   ©u/el, 

tovdniHcd '  aiace.  tJwcce/i'fance  to-a*v&/, 

£&L£*rt  SSL  =Q0,tJiw*. 


CERTIFIED    CHECKS. 

A  certified  check  is  one  for  the  payment  of  which  the  bank 
becomes  responsible,  upon  being  certified,  or  marked  "good" 
by  the  paying  teller,  with  his  signature  attached.  Certified 
checks  are  used  to  prevent  the  inconvenience  and  risk  of 
withdrawing  and  counting  sums  of  money  that  are  to  be  im- 
mediately paid  to  others.  They  are  also  used  instead  of 
drafts  for  making  remittances  to  distant  places. 


gto.  X22.  |  (Philadelphia,  £pril  6, 1867. 


4 

$1000. 


t^^uJ**»», * 

Jfcq  ' 

W££  «=^«W ®tda4J. 


*=^.  «1   jgp^JfiU 


TRANSACTIONS   WITH   BANKS. 


275 


CERTIFICATES    OF    DEPOSIT. 

Certificates  of  Deposit  are  used  when  money  is  temporarily 
deposited,  and  no  regular  bank  account  is  kept.  When  made 
payable  to  another  person's  order,  they  are  frequently  em- 
ployed for  making  remittances,  in  the  same  manner  as  cer- 
tified checks. 


josUn  Mittiorml  %mh 

goston,  J\£ass.,  Fel.  26,  1867. 
^AtzA.      "ffi(,   J0$a*>t& dc&J  c/e/iodt'/ec/  «n>   *££*/ 

•So  we  dec/vS  of.. /itm&e/fo ,/ia'ua'frte  (m  teduln  of 

/w    T&el'/t&ca'/e  /ilo/iel'ru  vnaoldea. 


TRANSACTIONS   WITH  BANKS. 

Banks  are  organized  institutions  for  the  employment  of 
capital.  Banks  of  "circulation  and  deposit"  have  the  use, 
under  certain  restrictions,  of  the  capital  paid  in  by  the  stock- 
holders, the  money  belonging  to  depositors,  and  the  notes  of 
their  own  circulation.  The  National  Banks  are  required  to 
deposit  with  the  Treasurer  of  the  United  States  interest-bear- 
ing bonds  of  the  United  States,  in  proportion  to  the  capital 
Btock  paid  in.  All  bonds  so  deposited  are  held  exclusively 
as  security  for  the  circulating  notes  delivered  to  the  banks 
depositing  the  bonds.  The  following  suggestions  may  be 
found  useful  to  those  who  have  dealings  with  banks : — 

Make  your  deposits  in  the  bank  as  early  in  the  day  as  you 
conveniently  can,  and  never  without  your  bank-book. 

For  your  own  security,  it  is  well  to  have  one  particular 


276  TRANSACTIONS   WITH   BANKS. 

person  to  do  your  business  at  the  bank,  who  shall  be  com. 
petent  to  take  charge  of  the  money  and  papers  you  intrust 
to  his  care,  and  sufficiently  intelligent  to  understand  and  pro- 
perly deliver  the  messages  and  explanations  you  may  have 
occasion  to  make ;  also,  that  you  write  or  stamp  over  your 
indorsement,  upon  all  checks  which  you  send  to  be  de- 
posited to  your  credit  in  the  bank,  the  words  "for  deposit 
to  our  credit,"  which  will  prevent  their  being  used  for  any 
other  purpose. 

Always  use  the  deposit  tickets  furnished  by  the  bank,  and 
examine  the  date  and  indorsement  of  every  check.  When 
checks  are  deposited,  the  banks  require  them  to  be  indorsed 
by  the  depositor,  whether  drawn  to  his  order  or  not. 

Keep  your  check-book,  when  not  in  use,  under  your  own 
lock  and  key.     Make  it  a  rule  to  give  checks  only  out  of 

YOUR  OWN  CHECK-BOOK. 

Draw  as  few  checks  as  possible.  When  you  have  several 
sums  to  pay,  draw  one  check  for  the  whole,  and  take  notes 
of  such  denominations  as  will  enable  you  to  distribute  the 
amount  among  those  you  intend  it  for. 

Do  not  allow  your  bank-book  to  run  too  long  without  being 
balanced,  and  when  returned  by  the  bank  compare  it  with 
your  own  account,  and  examine  your  cancelled  checks  without 
delay.  If  you  wish  to  preserve  your  cancelled  checks,  deface 
or  destroy  the  signature  as  soon  as  returned,  in  a  manner  that 
will  prevent  their  being  copied,  and  place  the  checks  out  of 
the  reach  of  others. 

In  filling  up  checks,  do  not  leave  space  in  which  the  amount 
may  be  increased.  It  has  been  decided  that  when  a  check  is 
so  carelessly  drawn  that  an  alteration  may  be  easily  made, 
the  loss  arising  from  the  alteration,  if  any,  must  be  borne  by 
the  drawer. 

Write  your  signature  with  your  usual  freedom,  and  never 
vary  the  style  of  it. 

Offer  notes  for  discount  or  collection  in  good  season.     Do 


COUNTERFEIT   BANK-NOTES.  277 

not  put  off  the  offering  of  notes  for  discount  until  the  last 
day  of  your  need.  When  notes  are  discounted  or  collected 
for  you,  hand  your  bank-book  to  the  clerk,  that  they  may  be 
entered  in  it  to  your  credit. 


COUNTERFEIT  BANK-NOTES. 

A  counterfeit  note  is  a  facsimile  of  the  genuine,  or  as 
nearly  like  it  as  it  can  be  made.  A  spurious  note  is  made  up 
of  designs  different  from  the  genuine,  and  calculated  to  pass 
where  the  genuine  is  not  known.  An  altered  note  is  one 
altered  from  a  lower  to  a  higher  denomination ;  or  one  on 
a  broken  or  bogus  bank,  on  which  the  name  or  locality  is 
changed  for  that  of  a  bank  in  good  standing. 

RULES   FOR   DETECTING   COUNTERFEIT   NOTES. 

Examine  the  vignette  or  picture  at  the  top  of  the  note  :  see  if  the 
faces  have  a  lifelike  expression ;  if  the  eyes  are  well  defined,  show- 
ing the  pupil  distinctly,  the  white  clearly ;  see  if  the  drapery  or 
dress  fits  well,  looks  natural  and  easy,  and  shows  the  folds  distinctly 
— if  the  whole  figure  harmonizes.  See  if  the  sky  is  clear,  or  trans- 
parent, or  soft  and  even,  and  not  scratchy,  and  if  the  different  ob- 
jects have  a  finished  appearance.  In  the  genuine,  small  figures  in 
the  background  are  always  exceedingly  well  executed. 

Examine  the  medallion  rulings  and  circular  ornaments  around  the 
figures,  &c. ;  see  if  they  are  regular,  smooth,  and  uniform.  When 
there  are  two  medallions  on  a  bill  designed  to  be  alike,  they  are 
exactly  alike,  being  from  the  same  original  die.  This  work  is  dono 
by  a  geometrical  lathe,  a  machine  of  immense  cost,  and  which  pro- 
duces fine  and  ornamental  circles  of  such  uniformity  and  exquisite 
perfection  that  it  is  almost  an  impossibility  for  the  counterfeiter  to 
produce  a  good  imitation. 

Examine  the  letters  and  figures ;  see  if  they  are  perfect  in  every 
respect, — all  perfectly  true  and  uniform  and  regular.  In  counter- 
feits the  round  handwriting  is  seldom  well  executed.  Carefully 
study  the  hair-lines  and  curves,  the  shade  or  parallel  ruling  on  the 
face  or  outside  of  the  letters  ;  see  if  they  are  without  breaks  or  flaws, 
and  have  a  finished,  graceful  appearance.  Examine  the  engraver's 
24 


278  NATIONAL   CURRENCY. 

signature  or  imprint ;  see  if  it  is  clearly  and  beautifully  engraved  ; 
if  the  letters  are  all  of  one  size  and  one  slant ;  if  the  distances  apart 
and  the  thickness  of  stroke  are  equal. 

Examine  the  President's  and  Cashier's  signatures.  In  some  coun- 
terfeits the  signatures  are  lithographed  facsimiles,  inked  over  with  a 
pen,  which  gives  them  a  stamped  appearance,  the  stroke  a  dead 
color  and  a  rough  edge,  and  sometimes  the  pen  does  not  follow  the. 
hair-stroke  curve  correctly  ;  while  the  genuine  signatures,  which 
are  written  with  a  pen,  have  rather  a  glossy  appearance,  and  the 
stroke  a  smooth  edge. 

Bank-notes  altered  by  what  is  termed  the  "pasting  process"  may 
be  detected  by  holding  them  to  the  light,  when  the  parts  pasted  on 
will  be  discovered.  When  the  alteration  has  been  made  by  substi- 
tuting figures  or  letters  for  others  which  have  been  extracted,  the 
denomination  in  the  centre  of  the  note,  when  examined  letter  by 
letter,  will  be  found  to  be  poorly  formed  and  blurred,  and  the 
parallel  lines  irregular  and  imperfect.  The  texture  of  the  paper 
between  the  letters  is  very  often  destroyed, — a  defect  which  may  be 
discovered  by  comparing  the  paper  between  the  letters  with  that 
immediately  above  and  below ;  the  ink  of  the  altered  part  is  also 
sometimes  diiferent  from  the  rest  of  the  note. 

Avoid  all  hurry  and  confusion  when  taking  money,  as  much  of 
the  bad  money  passed  is  passed  under  such  circumstances. 

DESCRIPTION  OF  NATIONAL   CURRENCY. 
NATIONAL  BANK-NOTES. 

United  States  and  title  of  bank  on  each  of  the  different  denomi- 
nations. 

Is. — Two  females  standing  in  front  of  an  altar,  one  of  them  point- 
ing upward.  A  large  1  on  the  left  end,  on  which  is,  "  Secured  by 
Bonds,"  &c. 

Reverse  Side. — Landing  of  Pilgrims,  in  large  oval;  one,  eagle  in 
shield ;  one,  on  right ;   one,  arms  of  the  State ;  one,  on  left  end. 

2s. — Large  2,  extending  almost  across  length  of  note ;  United 
States,  &c,  on  upper  part,  and  2  on  lower  part,  on  left  end ;  female 
seated  holding  American  flag,  on  which  is  a  wreath. 

Reverse  Side. — Sir  Walter  Raleigh  erect,  smoking  pipe;  six  men 
and  a  boy  grouped  around  him  at  a  table.  2,  eagle  and  shield,  on 
right ;  2,  arms  of  the  State,  on  left  end. 


NATIONAL    CURRENCY.  279 

5s« — Columbus  introducing  America  to  Europe,  Asia,  and  Africa, 
— the  countries  represented  by  female  figures.  Columbus  discover- 
ing America ;  four  men.     5  on  right  end,  Five  on  left  end. 

Reverse  Side. — Landing  of  Columbus  and  men.  Spread  eagle  on 
right ;  arms  of  the  State  on  left ;  Five  and  5  on  each  end. 

10s. — Female  seated  on  spread  eagle  in  clouds.  Franklin  draw- 
ing lightning  from  clouds  with  a  kite ;  boy  seated  ;  10  on  right,  ten 
on  left  end. 

Reverse  Side. — De  Soto  on  horseback,  with  his  army,  discovering 
the  Mississippi.  Spread  eagle  ;  arms  of  the  State ;  10,  10,  on  each 
side. 

20s. — On  right,  allegorical  representation  of  Loyalty ;  figure  of 
Liberty  in  foreground,  bearing  national  flag  ;  farmers,  artisans,  &c, 
rallying  around  the  flag.  On  left,  battle  of  Lexington.  20  on 
each  end. 

Reverse  Side. — Baptism  of  Pocahontas.  Eagle  and  shield ;  arms 
of  the  State ;  20  on  the  right,  XX  on  left  end. 

50s. — Allegorical  representation  of  Victory :  three  figures  in  a 
cloud ;  soldier  kneeling.  Washington  and  men  in  a  boat  crossing 
the  Delaware.     50  on  each  end. 

Reverse  Side. — Embarkation  of  the  Pilgrims.  Eagle  and  shield ; 
arms  of  the  State ;  50  and  L  on  each  side. 

100s. — Female  with  wings,  seated — allegorical  representation — 
maintenance  of  Liberty  and  Nationality.  Men  in  a  row-boat  in 
foreground,  two  vessels  in  background.  100,  C,  on  right  end ;  C,  100, 
on  left  end. 

Reverse  Side. — Signing  Declaration  of  Independence.  Eagle  in  an 
oval ;  arms  of  the  State ;  100  on  right,  C  on  left  side. 

TREASURY  NOTES,  OR  GREENBACKS. 

Is. — United  States.  A  long  oval  portrait  of  Hon.  S.  P.  Chase 
on  left  end.  A  strip  of  lathe-work  between  signatures.  1  in  green 
and  1  in  fancy  die.  Oval  in  the  lower  centre,  in  which  the  rays  con- 
verge to  the  number  showing  the  denomination  of  the  note,  which 
is  on  a  white  ground. 

2s. — A  side  view  of  Alexander  Hamilton  in  lower  left  centre. 
Two  strips  of  lathe-work.  II  in  green  die ;  2  on  each  end  in  fancy 
die.     Oval  in  lower  centre,  with  rays  similar  to  the  "ones." 

5s. — Five  Dollars.  5  on  a  strip  of  lathe-work ;  right  end,  male 
portrait ;  5  above  ;  left  end,  female  erect,  with  sword  and  shield. 


280  DUE-BILLS    AND    NOTES 

10s. — Upper  centre,  eagle  on  a  shield.  10  in  green  die  each  side. 
Right  end,  female  erect  by  pedestal,  holding  tablet,  &c. ;  left  end, 
portrait  of  President  Lincoln. 

20s. — Centre,  female  erect,  with  sword  and  shield  ;  figure  20  and 
green  die  each  side.  Twenty  Dollars  across  each  end  in  green 
die-work. 

50s. — Side  view  of  Alexander  Hamilton  in  oval  die.  Treasury 
die  in  pink  on  right  of  vignette.     50  on  die  on  each  end  of  ncte. 

100s. — Large  spread  eagle  on  a  rock.  100  in  green  die  on  right; 
100  in  black  die  in  right  upper  corner ;  100  in  black  die  in  lower 
left  corner. 

500s. — In  centre,  portrait  of  Albert  Gallatin  in  round  green  die. 
500  on  each  end.  Five  Hundred  Dollars  on  a  strip  of  lathe-work 
below. 

1000s. — In  centre,  portrait  of  Robert  Morris  in  green  round  die. 
M,  with  1000  across  it,  on  each  end.  One  Thousand  Dollars  on  a 
green  strip  of  lathe-work  below. 


DUE-BILLS. 

A  Due-Bill  is  a  simple  acknowledgment  of  a  debt,  in 
writing.  It  is  not  payable  to  order,  nor  is  it  assignable  by 
mere  indorsement.  Bouv.  L.  D.  It  is  subject  to  all  the  off- 
sets and  equitable  rights  between  the  original  parties,  and 
action  must  be  brought  in  the  name  of  the  original  obligee. 
Due-bills  do  not  draw  interest  unless  specified. 

DUE-BILL   FOR   MONEY. 
$125.  Philadelphia,  July  10,  1866. 

Due  Henry  W.  Chase,  for  value  received,  One  Hundred  and 
Twenty-Five  Dollars,  with  interest. 


DUE-BILL   FOR   GOODS. 

Due,  New  York,  August  9th,  1866,  to  H.  Y.  Bennett,  for  value 
received,  Sixty-Five  -ffo  Dollars,  in  goods  from  my  store. 

$65ffo.  Geo.  W.  Hanson. 


PROMISSORY  NOTES.  281 


PRODUCE  NOTES. 

A  Produce  Note  is  a  written  engagement  to  deliver 
specific  articles  to  a  specified  amount.  Like  due-bills,  produce 
notes  are  not  assignable  by  mere  indorsement.  The  maker 
of  the  note  must  be  able  to  prove  that  he  was  ready  at  the 
proper  time  and  place,  and  continued  ready,  to  deliver  the 
articles,  or  he  may  be  compelled  to  pay  their  value  in  money. 

PRODUCE  NOTE. 


$S7-N*-  Lebanon,  July  2,  1866. 

For  value  received,  we  promise  to  pay  to  Tlws.  J.  Stewart,  on  de- 
mand, Thirty-Seven  T2^5  Dollars,  in  goods  at  our  store. 

R.  B.  Painter  &  Co. 


FORM   OF   ASSIGNMENT   OF   A   PRODUCE   NOTE. 
(To  be  indorsed  on  the  back  of  the  Note.) 
For  value  received,  I  assign  the  within  Note  to  A.  J.  Gordon, 
without  (or  with)  recourse,  this  17th  day  of  July,  1866. 

Thos.  J.  Stewart. 


PROMISSORY  NOTES. 

A  Promissory  Note  is  a  written  promise  to  pay,  uncon- 
ditionally and  at  all  events,  a  specified  sum  of  money.  Pro- 
missory notes  are  either  negotiable  or  non-negotiable. 

A  note  is  negotiable  when  the  promise  is  made  not  only  to 
the  person  named  in  it,  but  to  his  order  or  bearer,  and  may 
be  collected  by  whomsoever  may  be  the  holder  of  the  note  at 
the  time  of  its  maturity. 

If  a  note  be  made  payable  to  Jas.  Graham,  or  bearer,  it 

may  be  collected  by  Jas.  Graham,  or  by  any  one  who  may 

hold  or  bear  it,  and  is  negotiable  by  mere  delivery. 
24* 


282  PROMISSORY  NOTES. 

FORM  OF  NOTE  PAYABLE  TO  BEARER. 

$500.  Portland,  July  3,  1866. 

Three  months  after  date,  I  promise  to  pay  to  James  Graham, 
or  bearer,  Five  Hundred  Dollars.     Value  received. 

Chas.  J.  Raymond. 

A  note  made  payable  to  James  Graham,  or  order,  may  be 
collected  by  any  one  to  wbom  James  Graham  may  order  it  to 
be  paid.  The  order  is  commonly  written  upon  the  back  of 
the  note,  and  is  called  an  indorsement.  If  James  Graham 
simply  wrote  his  name  on  the  back  of  the  note,  it  would  be 
an  indorsement  in  blank,  and  is  equivalent  to  "Pay  to 
bearer/'  and  would  then  be  negotiable  by  delivery.  (See 
Indorsements.) 

note  payable  to  a  person,  or  order. 


$1000.  Troy,  June  29,  1866. 

Thirty  days  after  date,  for  value  received,  we  promise  to 
pay  to  James  Graham,  or  order,  One  Thousand  Dollars. 

J.  B.  Flannigan  &  Co. 

A  note  made  payable  to  James  Graham,  or  James  Graham 
only,  is  not  negotiable,  and  is  payable  only  to  the  party  named. 

NON-NEGOTIABLE   NOTE. 


$800.  Worcester,  June  10,  1866. 

Sixty  days  after  date,  I  promise  to  pay  to  James  Graham 
Three  Hundred  Dollars.     Value  received. 

Henry  J.  Gordon. 

A  custom  prevails  in  the  mercantile  community  of  draw- 
ing notes  payable  to  the  maker's  own  order,  with  his  indorse- 
ment, for  the  purpose  of  facilitating  their  transfer  without 
requiring  the  holder  to  indorse  them. 


PROMISSORY  NOTES.  283 


NOTE  TO  ONES  OWN  ORDER. 


$1800.  Pittsburgh,  September  20,  1866. 

Four  months  after  date,  I  promise  to  pay  to  the  order 
of  myself  Eighteen  Hundred  Dollars,  without  defalcation.  Value 
received.  Philip  T.  Wharton. 

In  Pennsylvania,  the  words  "  without  defalcation"  must  be 
inserted  in  the  note  in  order  to  render  it  negotiable.  In  New 
Jersey,  " without  defalcation  or  discount;"  in  Missouri,  "ne- 
gotiable and  payable  without  defalcation  or  discount;"*  in  In- 
diana, the  words  "without  any  relief  whatever  from  valuation 
or  appraisement  laws"  are  inserted. 

The  words  "  value  received"  imply  a  consideration,  which 
is  necessary  to  make  a  promise  binding  on  the  maker  of  it. 

The  person  who  promises  to  pay  is  called  the  promisor, 
maker,  or  drawer;  the  person  to  whom  the  note  is  made 
payable  is  called  the  payee;  the  person  who  writes  his  name 
upon  the  back  of  the  note  is  called  the  indorser ;  and  the  per- 
son to  whom  it  is  transferred  by  indorsement  is  called  the 
indorsee. 

All  the  parties  who  have  written  their  names  on  a  note  are 
liable  for  the  amount  due,  but  only  one  satisfaction  can  be 
recovered. 

A  note  given  on  Sunday  is  void;  so  is  a  note  founded  upon 
fraud,  or  when  the  consideration  is  illegal.  Any  material 
alteration  in  a  note — as,  for  instance,  in  the  date,  or  amount, 
or  time  of  payment — discharges  all  parties  who  have  not  con- 
sented to  such  alteration. 

If  a  person  at  the  time  of  taking  a  note  has  notice  that  it 
is  void  through  fraud  or  upon  any  legal  grounds,  he  places 
himself  in  the  position  of  the  payee.  A  note  as  a  gift  is  void 
from  want  of  consideration. 

Notes  made  payable  at  a  fixed  time  are  allowed  three  days 
after  the  expiration  of  the  time  expressed  for  payment 
These  three  days  are  called  "days  of  grace." 


By  a  recent  law,  these  words  are  no  longer  necessary. 


284  PROMISSORY  NOTES. 

Demand  for  payment  must  be  made  upon  the  last  day  of 
grace ;  or,  if  that  falls  on  Sunday,  or  on  a  leading  holiday, 
such  as  the  Fourth  of  July,  Thanksgiving,  Christmas,  New 
Year,  and,  in  Pennsylvania,  Washington's  Birthday,  demand 
must  be  made  on  the  day  previous. 

If  a  n(,te  is  given  by  a  person  who  cannot  write,  it  is  im- 
portant to  have  a  witness  who  can  testify  to  the  genuineness 
of  his  mark. 

Promissory  notes  do  not  bear  interest  until  after  maturity 
unless  so  specified. 

If  a  note  is  paid  before  due,  and  afterwards  comes  intc 
the  hands  of  a  bona  fide  holder  for  value,  he  can  still  claim 
full  payment  from  the  maker  at  maturity. 

A  note  after  it  is  dishonored  or  over-due  is  not  negotiable, 
but  subject  to  all  the  equities  which  the  maker  may  have 
against  the  original  payee;  and  no  more  can  be  collected  than 
the  original  payee  could  have  recovered. 

A  note  given  by  a  minor  is  voidable  at  the  election  of  the 
minor ;  and,  until  ratified  by  him  after  his  arrival  at  full  age, 
it  is  of  no  effect. 

If  no  time  is  fixed  for  payment  in  the  note,  it  is  payable 
upon  demand;  if  payable  to  a  fictitious  person,  it  is  payable 
to  bearer. 

If  a  promissory  note,  or  bill  of  exchange,  has  been  lost  or 
destroyed,  payment  must  be  demanded  and  notice  given  as  if 
the  note  was  still  in  possession. 

The  amount  of  a  negotiable  or  non-negotiable  bill  or  note 
which  has  been  destroyed  by  fire  or  other  accident,  may  be 
recovered  upon  sufficient  proof. 

Payment  of  a  non-negotiable  note  which  has  been  lost  may 
be  enforced;  but  if  a  note  or  bill  negotiable  and  transferable 
is  lost,  it  is  held  in  some  States  that  a  suit  at  law  may  be 
maintained  against  the  maker;  in  others,  that  it  cannot;  and, 
again,  in  others,  that  the  holder  may  recover  upon  sufficient 
security  and  indemnity  being  given. 


PROMISSORY   NOTES.  285 

The  amount  of  a  note  should  always  be  written  cut  in 
words ;  it  is  usually  written  in  both  words  and  figures.  When 
the  sum  in  figures  differs  from  that  expressed  in  words,  the 
latter  is  taken  as  the  amount  of  the  note. 

Presentment  for  Payment. — The  presentment  of  a  bill 
of  exchange  or  promissory  note  should  be  made  on  the  day 
of  its  maturity, — that  is,  on  the  last  day  of  grace, — and  not 
before,  and  must  be  made  personally,  either  by  the  holder  or 
his  authorized  agent,  and  cannot  be  made  by  a  written  de- 
mand sent  to  him  through  the  post-office. 

In  order  to  charge  an  indorser,  if  the  bill  or  note  is  pay- 
able at  a  particular  place,  a  bank  for  instance,  it  must  be  pre- 
sented there  for  payment  on  the  very  day  it  becomes  due;  if 
no  place  is  mentioned,  the  demand  must  be  made  at  the 
maker's  place  of  business  during  business  hours,  or  at  his 
dwelling-house  within  reasonable  hours.  If  the  note  is  given 
by  joint  makers,  it  must  be  presented  to  them  all.  In  case 
of  the  death  of  the  maker,  it  should  be  made  to  the  executor 
or  administrator,  if  they  have  been  appointed;  if  not,  at  the 
dwelling-house  of  the  deceased.  When  the  maker  has  ab- 
sconded, no  presentation  is  necessary. 

A  Notary,  or  Notary  Public,  is  an  officer  authorized  by 
law,  whose  business  it  is  to  attest  documents  or  writings  of 
any  kind  to  give  them  the  evidence  of  authenticity. 

A  Protest  of  a  promissory  note  or  bill  of  exchange  is  a 
formal  declaration  made  by  a  Notary  Public  under  hand  and 
seal,  at  the  request  of  the  holder  of  a  bill  or  note,  for  non- 
acceptance  or  non-payment.  This  declaration  is  a  protest  to 
the  drawer  and  all  other  parties  to  the  bill  against  any  loss 
which  may  be  sustained  by  the  payee  or  holder.  (See  Bills 
oe  Exchange.) 

It  is  not  necessary,  to  fix  the  liability  of  the  maker  of  a 
note,  that  there  should  be  demand,  protest,  cr  notice;  but 
notice  of  non-payment,  either  verbal  or  wiitten,  but  well 
authenticated,  to  the  indorser,  is  necessary  to  hold  him  liable. 


286  PROMISSORY   NOTES. 

The  notice  should  be  given  on  Ihe  same  day  on  which  the 
note  falls  due,  or  the  next  day  thereafter;  otherwise  the  in- 
dorser  will  be  discharged. 

The  notice  should  state  that  the  bill  or  note  was  duly  pre- 
sented, and  that  payment  was  refused,  and  should  contain  a 
correct  description  of  the  note,  so  that  there  can  be  no  mis- 
take in  regard  to  its  identity ;  it  should  also  contain  a  declara- 
tion that  the  person  to  whom  the  notice  is  sent  will  be  looked 
to  for  payment  and  indemnity.     (See  Notice,  page  292.) 

It  is  advisable,  when  a  note  is  not  paid  by  three  o'clock 
on  the  day  of  its  maturity,  to  place  it  in  the  hands  of  a 
notary  for  protest,  as  the  protest  is  evidence  that  the  note 
was  properly  presented  for  payment  and  that  payment  was 
refused.     The  notary  will  send  the  notices  required. 

An  Accommodation  Note  is  one  for  which  the  maker 
receives  no  consideration,  but  which  he  makes  for  the  purpose 
of  lending  his  credit  to  the  payee  to  enable  him  to  raise 
money.  The  party  for  whom  such  an  accommodation  was 
made,  cannot  recover  from  the  maker;  but  if  it  is  indorsed 
for  value  to  a  third  person,  although  he  may  have  notice  that 
it  is  an  accommodation  note,  and  no  consideration  was  given 
for  it,  that  third  person  can  nevertheless  recover  from  the 
original  maker.  An  accommodation  note  is  drawn  in  the 
ordinary  negotiable  form,  and  is  either  made  payable  to  the 
party  accommodated,  or  passed  by  the  payee  to  the  credit 
of  the  drawer. 

A  Collateral  Note  is  one  given  with  stocks  or  other  pro- 
perty as  security,  empowering  the  payee  to  sell  if  the  note 
should  not  be  paid  when  it  becomes  due. 

A  Joint  Note  is  one  which  is  written  thus,  "we  promise 
to  pay,"  &c,  signed  by  two  or  more  persons,  or  written 
"we  promise  to  pay,"  and  signed  "A.  B.,  principal,  H.  T., 
security."  The  words  principal  and  security  only  show  the 
relation  of  the  makers  to  each  other;  they  do  not  affect 
other  parties. 


PROMISSORY   NOTES.  287 

When  a  note  is  written  "we  jointly  and  severally  promise." 
j>r  "I  promise,"  &c,  and  signed  by  two  or  more  persons,  it  is 
a  Joint  and  Several  Note. 

The  promisors  of  a  joint  note  must  be  sued  jointly,  while 
either  promisor  of  a  joint  and  several  note  may  be  sued  alone. 

A  release  of  the  maker,  or  of  one  joint  maker,  by  the 
holder,  is  a  discharge  of  all  the  indorsers. 

If  a  seal  is  added  to  a  promissory  note,  it  is  not  debarred 
or  cut  off  by  the  Statute  of  Limitations,  but  it  then  becomes 
non-negotiable,  and  can  be  transferred  only  by  assignment. 

A  Judgment  Note  differs  from  a  common  promissory 
note  in  having  a  seal  appended,  with  a  power  of  attorney  to 
confess  judgment. 

The  maker,  by  this  power  of  attorney,  authorizes  the  payee 
to  have  judgment  entered,  which  is  a  lien  against  his  lands 
or  estate,  and  authorizes  the  issuing  of  an  execution  without 
resort  to  a  suit  by  the  ordinary  course  of  law. 


An  agent  is  personally  liable  on  the  contract  he  makes,  if 
he  makes  himself  so  expressly,  or  transcends  his  authority. 
(See  Agency.) 

If  an  agent  exceeds  his  authority  in  signing  the  name  of 
his  principal  to  a  note,  the  note  will  be  void  as  to  the  princi- 
pal, even  in  the  hands  of  a  bona  fide  holder.  A  general  author- 
ity to  transact  business,  even  if  it  is  expressed  in  words  of 
very  wide  meaning,  will  not  be  held  to  include  the  power  of 
making  the  principal  a  party  to  negotiable  paper. 

If  an  agent  having  authority  gives  a  note  beginning  "  I  pro- 
mise," &c,  and  signed  "A.  for  B.,"  it  has  been  decided  that 
this  is  the  note  of  the  principal,  and  not  of  the  agent. 

If  an  agent  of  an  incorporated  company  makes  a  note  be- 
ginning "I  promise,"  &c,  and  signs  it  "A.  B.,  agent  for 

Company  the  compf  iy,  and  not  the  agent,  is  liable  on  the 
note. 


288  PROMISSORY   NOTES. 


FORMS    OF   NEGOTIABLE   NOTES. 

f600.  New  York,  July  17,  1866. 

Three  months  after  date,  I  promise  to  pay  to  George  H. 
Morehead,  or  order,  it  the  Metropolitan  National  Bank,  Six  Hun- 
dred Dollars.    Value  received.  Samuel  H.  Stewart. 


0675.  Philadelphia,  August  8,  1866. 

Sixty  days  after  date,  we  promise  to  pay  to  Edmund  A. 
Souder,  or  order,  Six  Hundred  and  Seventy- Five  Dollars,  without 
defalcation.    Value  received.  L.  H.  Burton  &  Co. 


$3500.  Trenton,  N.J.,  August  9,  1866. 

Thirty  days  after  date,  for  value  received,  I  promise  to  pay 

to  Geo.  L.  Bovjer,  or  bearer,  Three  Thousand  and  Five  Hundred 

Dollars,  without  defalcation  or  discount. 

Robert  H.  Turner. 


NOTE    WITHOUT    DAYS    OF    GRACE. 
$J5#  7  5  New  Orleans,  April  4,  1867. 

Ten  days  after  date,  without  grace,  I  promise  to  pay  to 

Samuel  G.  Milburn,  or  order,  Two  Hundred  and  Fifty  rVff  Dollars. 
Value  received.  Philip  S.  Chester. 

ONE   FORM   OF   ACCOMMODATION   NOTE. 

0500.  Lancaster,  March  13,  1867. 

Sixty  days  after  date,  I  promise  to  pay  to  the  order  of 
John  D.  Laverty  Five  Hundred  Dollars,  at  the  Lancaster  National 
Bank,  without  defalcation.     Value  received. 

Credit  the  drawer,     )  S.  F.  Powell. 

John  D.  Laverty.  J 

NOTE    BEARING   INTEREST. 

$290.  Albany,  August  16,  1866. 

Six  montJis  after  date,  I  promise  to  pay  Charles  Riqua  &  Co., 
or  order,  Two  Hundred  ana  Ninety  Dollars,  with  interest.  Value 
received.  John  L.  Brown. 


PROMISSORY   NOTES.  289 

g  A   JOINT    NOTE. 

Montgomery ■,  August  11,  1866. 
Three  mor,ths  after  date,  we  jointly  promise  to  pay  to  Walter 
L.  Vaughan,  or  order,  Three  Hundred  and  Fifty  Dollars.    Value 
received.  William  H.  Tracy, 

$350.  Darwin  L.  Hunter. 

A   JOINT   AND   SEVERAL   NOTE. 

Montpelier,  October  11,  1866. 
Sixty  days  after  date,  we  jointly  and  severally  promise  to  pay  to 
the  order  of  John  B.  Felshaw  Seven  Hundred  and  Thirty  /^ 
Dollars,  without  defalcation.     Value  received. 

$780ffo.  Henry  A.  Tyson, 

James  C.  English. 

NON-NEGOTIABLE    NOTE. 

Harvard,  111.,  April  9,  1867. 
Thirty  days  after  date,  I  promise  to  pay  to  A.  D.  Groesbech  One 
Thousand  Dollars.     Value  received. 

-J——  Charles  J.  Fisher. 

$1000. 


JUDGMENT    NOTE. 

Sixty  days  after  date,  I  promise  to  pay  to  Augustus  H. 
Robinson,  of  Buffalo,  or  order,  One  Thousand  Dollars,  with  in' 
terest,  for  value  received. 

And  further,  7"  do  hereby  authorize  any  attorney  of  any  Court  of 
Record  in  Pennsylvania,  or  elsewhere,  to  appear  for  mc,  at  any  time 
after  the  above  note  becomes  due  and  remains  unpaid,  and  after  declara- 
tion filed  thereupon,  to  confess  judgment  against  me  for  the  above  sum, 
with  costs  of  suit,  release  of  errors,  £c. 

Witness  my  hand  and  seal,  at  Cincinnati,  this  17th  day  of  August, 
in  the  year  one  thousand  eight  hundred  and  sixty-six. 

Signed,  sealed,  and  delivered 
in  the  presence  of 

Orlando  Barnes,  Joel  F.  Harrison.     [Seal.] 

Henry  F.  Foster. 

T  25 


290  PROMISSORY   NOTES. 


A   NOTE   PAYABLE   BY   INSTALMENTS. 


Baltimore,  September  10,  1S66. 
For  value  received,  I  promise  to  pay  to  Charles  M.  Wil- 
liamson, or  order,  Twelve  Hundred  Dollars,  with  interest,  in  the 
manner  following,  viz.,  Two  Hundred  Dollars  two  months  after 
date,  and  the  balance  in  instalments  of  Two  Hundred  Dollars  each, 
payable  every  two  months  thereafter,  until  the  whole  amount  shall  be 
paid,  James  L.  Bennett. 

FORM   OP   NOTE   USED   BY    MANY   WHOLESALE    HOUSES. 


$750.  (Philadelphia,  JAay  19,  1867. 

*=0fa.t€i,  mwn.t/t&  after  date,  =^  the  subscriber, 
residing  in  <=>4Za&At//in.,  <=£/%**.£  <^v  tJ^fitate  ojf(D/i*a, 
promise  to  pay  to  the  order  of  &/ati*t<y,  <=rf£o<i.ie  $  <%oo.. 
One  Hundred  and  Fifty  Dollars,  for  value  received,  nego- 
tiable and  payable  without  defalcation  or  discount,  and 
without  relief  from  any  valuation  or  appraisement  law, 
with  current  rate  of  exchange  on  Philadelphia,  Pa. 

JTo.89.    Que  Sept.  191 SS.      j^  ^  j$U^. 


INDIANA   PARTNERSHIP    NOTE. 


$100^Q.  Indianapolis,  June  16,  1864. 

Four  months  after  date,  we,  the  subscribers,  of 
Blue  River,  county  of  Johnson,  State  of  Indiana,  promise  to  | 
pay  to  the  order  of  Hunter,  Simons  &  Co. 

(without  any  relief  whatever  from  appraisement  or  valuation  laws,  with  the 
current  rate  of  exchange) 

One  Hundred  7Vrr  Dollars,  without  defalcation,  for  value 
rec'd,  payable  and  negotiable  at  tlie  State  Bank  of  Indiana. 

Samuel  Hunter,  Humes  &  Linn. 

Alfred  Simons, 
William  Smith. 


PROMISSORY   NOTES. 


291 


292  PROTEST. 


FORM    OF    PROTEST    AND    NOTICE. 

2UttttrtJ  States  of  &m«ttca* 

$t  it  JinofotT,  That  on  the  day  of  the  date  hereof,  at  the  request 
of  Henry  L.  Dawson,  of  Philadelphia,  the  holder  of  the  original  note 
of  which  a  true  copy  is  hereunto  annexed,  I,  the  undersigned,  Notary 
Public  for  the  Commonwealth  of  Pennsylvania,  by  lawful  authority 
duly  commissioned  and  sworn,  residing  in  the  city  of  Philadelphia, 
presented  the  same,  during  the  usual  hours  of  business  for  such  pur- 
poses, at  the  place  of  business  of  the  maker,  to  a  proper  person  there 
duly  acting  and  attending,  and  competent  to  give  answers,  and 
demanded  payment  thereof,  which  was  refused,  and  answer  was 
made  that  the  maker  of  the  note  was  not  within,  and  that  there 
were  no  funds  provided  there  for  its  payment. 

SSlljcrttipon:  I,  the  said  Notary,  at  the  request  aforesaid,  Ijabfi 
|3rotcst£b,  and  do  hereby  solemnly  protest,  against  all  persons  and 
every  party  concerned  therein,  whether  as  Maker,  Drawer,  Drawee, 
Acceptor,  Payer,  Indorser,  Guarantee,  Surety,  or  otherwise  how- 
soever against  whom  it  is  proper  to  protest,  for  all  Exchange,  Re- 
exchange,  Costs,  Damages,  and  Interest,  suffered  and  to  be  suffered 
for  want  of  payment  thereof: — Of  which  demand  and  refusal  I 
duly  notified  Woodward  &  Warner,  the  indorsers  thereof. 

&I]uS  bone  aub  |h'0tcstcb,   at  Philadelphia 
aforesaid,  the  nineteenth  day  of  Jan.,  18G8. 

Harrison  M.  Boyd,  Notary  Public. 


[Seal.] 


NOTICE   TO   INDORSER. 

Philadelphia,  Jan.  19th,  1868. 
Payment  of  a  Promissory  Note  drawn  by  Richard  S.  Wilton  in 
favor  of  yourselves,  and  by  you  indorsed,  dated  Nov.  16th,  1867, 
for  Five  Hundred  Dollars,  delivered  to  me  for  Protest  by  Henry  L. 
Dawson,  the  holder,  being  this  day  due,  demanded,  and  refused,  you 
will  be  looked  to  for  payment,  of  which  you  hereby  have  Notice. 
Harrison  M.  Boyd,  Notary  Public 
To  Messrs.  Wdoi^vard  &  Warner. 


DRAFTS   AND    BILLS    DF   EXCHANGE.  293 


DRAFTS   AND   BILLS   OF   EXCHANGE. 

A  Draft  or  Bill  of  Exchange  is  an  order,  or  open  letter 
af  request,  for  a  sum  of  money,  addressed  to  a  person  in  a 
distant  place. 

A  Bill  of  Exchange  must  be  for  the  payment  of  money,  and 
also  payable  absolutely  at  all  events,  and  must  not  depend 
upon  any  uncertainty  or  contingency. 

When  the  order  is  addressed  to  a  person  residing  in  a 
foreign  state  or  country,  it  is  called  a  Foreign  Bill  of  Ex- 
change. 

When  addressed  to  a  person  residing  in  the  same  State  or 
country  as  the  drawer,  it  is  called  a  Draft,  or  an  Inland  or 
Domestic  Bill  of  Exchange. 

The  different  States  of  the  United  States,  in  law,  are  for- 
eign to  each  other :  so  that  a  bill  drawn  in  Pennsylvania 
upon  a  person  in  Illinois  is  considered  a  foreign  bill. 

There  are,  however,  no  essential  differences  between  foreign 
and  inland  bills,  except  that  the  rights  of  proceeding  and 
remedies  thereon  are  governed  by  different  rules  and  regula- 
tions in  different  countries ;  and  in  the  case  of  foreign  bills, 
when  acceptance  or  payment  is  refused,  a  protest  is  indis- 
pensably necessary.  This  instrument  is  admitted  in  foreign 
countries  as  a  legal  proof  of  the  refusal. 

A  protest  is  not  absolutely  required  to  entitle  the  holder  of 
an  inland  bill  to  recover  from  the  drawer  or  indorser  when 
acceptance  or  payment  has  been  refused.  Due  notice,  how 
ever,  must  be  given  of  the  non-acceptance  or  non-payment. 

Drafts,  or  bills  of  exchange,  are  used  for  safety  in  making 

remittances.     They  are  drawn  payable  to  the  order  of  the 

person  to  whom  sent,  and  are,  therefore,  not  to  be  paid  until 

indorsed  by  him. 

Their  use  avoids  the  expense  and  trouble  of  sending  coin 
25* 


294  DRAFTS   AND    BILLS    OF   EXCHANGE. 

or  currency,  and  as  they  are  left  in  the  hands  of  the  person 
making  the  payments,  they  thus  become  vouchers  to  prove 
that  the  money  has  been  properly  paid. 

Bills  of  Exchange  may  be  made  payable  at  sight,  that  is, 
on  presentation ;  or  a  certain  time  after  sight,  or  on  demand, 
or  a  certain  time  after  date. 

They  are  sometimes  drawn  at  usance,  which  is  the  usual 
time  allowed  by  custom  or  law  in  the  place  where  they  are 
made  payable,  and  varies  from  fourteen  days  to  three  months. 
The  usance  of  England  is  sixty  days  after  sight,  with  three 
days  of  grace;  of  France,  thirty  days. 

If  made  payable  in  so  many  days  after  sight,  or  demand, 
they  should  be  presented  for  acceptance,  in  order  to  fix  the 
period  of  payment;  but  if  the  bill  is  payable  on  demand  or  at 
sight,  or  a  certain  number  of  days  after  date,  it  need  not  be 
presented  merely  for  acceptance,  but  only  for  payment.  It  is 
usual,  however,  and  advisable,  to  present  all  bills  except  those 
drawn  payable  at  sight,  or  on  demand,  for  acceptance. 

If  the  bill  contains  the  words  uas  per  advice,"  the  drawee 
may  wait  for  further  directions  or  advice ;  and  if  he  accepts 
or  pays  without  doing  so,  he  does  it  at  his  own  peril. 

Bills  of  Exchange  are  usually  collected  through  the  medium 
of  banks  or  bankers,  and,  when  desired  for  the  purpose  of 
making  remittances,  may  be  purchased  from  Jhem,  generally, 
at  a  small  premium  or  discount  on  the  amount  of  the  bill. 

The  person  who  writes  or  draws  the  bill  is  called  the 
drawer.  The  person  to  whom  it  is  addressed  is  called  the 
drawee.  The  person  to  whom  payment  is  made  is  called  the 
payee.  If  the  drawee  agrees  to  pay  the  money  signified  in 
the  bill,  he  does  it  by  writing  his  name  across  the  face  of 
the  bill,  and  is  then  said  to  accept  it,  and  is  called  the  ac- 
ceptor. If  the  person  to  whom  the  bill  is  made  payable 
assigns  it  to  another  person,  he  does  it  by  writing  his  name 
upon  the  back  of  the  bill,  and  is  then  called  the  indorser. 

Accepting  a  bill  binds  the  acceptor  the  same  as  signing  a 


DRAFTS    AND    BILLS    OF    EXCHANGE.  295 

note  of  the  same  tenor.  Every  indorser,  as  well  as  the  ac- 
ceptor, is  security  for  the  bill,  and  if  protested  for  non-accept- 
ance or  non-payment,  they  and  the  drawer  are  liable  to  the 
holder  for  the  principal  sum,  the  interest,  and  the  expense 
incurred  by  the  dishonor, — such  as,  cost  of  protest,  broker's 
commission,  and  rate  of  exchange.  Most  of  the  States  of  the 
Union  have  provided  by  statute  a  certain  fixed  sum  or  per- 
centage in  lieu  of  damages  and  re-exchange.  The  parties  to  a 
bill  are  liable  to  the  holder  according  to  the  law  of  the  place 
where  they  entered  into  their  respective  contracts;  the  drawer, 
according  to  the  law  of  the  place  where  the  bill  is  drawn  \  the 
acceptor,  according  to  the  law  of  the  place  of  acceptance ;  and 
the  indorsers,  of  the  place  where  the  indorsements  were  made 

When  a  person  draws  a  bill  of  exchange,  he  subjects  him- 
self to  the  payment  of  it  should  the  person  on  whom  it  is 
drawn  refuse  cither  to  accept  or  pay,  if  the  holder  of  the  bill 
gives  him  due  notice. 

If  acceptance  is  refused,  or  if  payment  is  not  made  on  the 
day  when  the  bill  becomes  due,  notice  should  be  given,  with- 
out delay,  to  each  party  liable,  that  they  may  be  held. 

The  holder  should  give  notice  to  the  other  parties  to  the 
bill,  if  the  acceptance  is  in  part,  or  qualified,  or  not  in  full, 
if  he  intends  having  recourse  to  them  in  case  of  non-payment 
when  due. 

The  acceptor,  who  is  the  party  originally  held  bound,  may 
be  allowed  whatever  indulgence  or  delay  the  holder  pleases, 
short  of  the  time  allowed  by  the  statute  of  limitations. 


296 


BILLS   OF   EXCHANGE. 


A   DRAFT   OR   INLAND   BILL   OF   EXCHANGE. 


No.  37. 

Y 
g 


K 


SocfecstCT,  go£r.  2-ilfe,  IS65. 

j^t  2~en,  (2)a,z/s'  tfig-^,  (Pat/  to  the 

Order  of CHARLES  McCUNTOCK 

OJTS  <lH10TJBjl]TQ  QOLLjlIlS, 

Value  received,  and  charge  to  J-Lccount  of 

To  Duncan  &  Sherman,  077  02? ,,  • 

New  York. 


ACCEPTED   DRAFT. 


(2>ouer,  (Deo.  gth,  1$65. 


^Ten  (Days  \£  t§  after  Sight,  (Pay  to  the 


-"8, 


Order  of THOMAS* JW.  MOORE. 


9TW0  Hundred  and  ^  Fifty jVjt  (Dollars, 

Value  received,  whichU^. place  to  Jlccount  of 

To  R.  R.  Robinson  &.  Co.  §rf  /ff        .       // \A  // 

Wilmington,  Del.  ^  /ame*  ^^tie//. 


Drafts  are  sometimes  accepted  in  the  following  form  : — "Accepted 
Apr.  4th,  1867,  payable  at  the  City  National  Bank,  Charles  Ennis." 


FOREIGN   BILLS   OF   EXCHANGE. 

Foreign  Bills  of  Exchange  are  usually  drawn  in  Sets,  called 
the  First,  Second,  and  Third,  etc.  of  Exchange,  all  of  the 
same  tenor  and  date,  and  so  worded  that  when  one  is  paid 
the  others  are  rendered  void.  They  are  sent  by  different 
mails  or  conveyances,  as  a  precaution  against  loss  or  incon- 
venience arising  from  accident  or  miscarriage.  Sola  is  the 
name  given  to  a  single  bill. 


BILLS    OF   EXCHANGE. 


297 


FIRST    OF    A    SET    OF    EXCHANGE    ON    LIVERPOOL. 


W>mbm% ©  f@F  &JGQ}@,  $°*ton,  &pr.  30,  1567. 

^U  &':rty  X>ays'  ;%A*  of  this  FIRST 
0/  Exchange  (Second  §■  Third  of  same  tenor  and  date  unpaid) 
Pay  to  the  Order  of (PEQTEIi  WjlLKEIi 

■^^-^^•One   ^Thousand  (Pounds   Sterling-^^-^-  ** 
for  Value  received,  and  place  the  same  to  account  of 
s^    To  Brown,  Shipley  &.  Co.,    l  s?g? 

Gfe  I"  I  V  rlL 

^»  Liverpool,  tng.  t=3 


i-eo^ne  ^=~!r>ea'bo*6il 


y- 


SECOND    OF    A    SET    OF    EXCHANGE    ON    PARIS. 

£mbm$®  f@p  4Q),2a©  Pp,         S*  loth,  p*.  14, 1866. 

^  tftarty  Z>a,ys'  %M  0/  *A«  SECOND 
of  Exchange  (First  $  Third  of  same  tenor  and  date  unpaid) 
Pay  to  the  Order  of J08E(PEC  WIL80JT.. 

^Ten  thousand  2~u>o  Hundred  Francs- 
for  Value  received,  and  place  the  same  to  account  of 


^«. 


vw^^w»vvv»M»»yv^vwvv>^^~^ 


THIRD    OF    A    SET    OF    EXCHANGE    ON    FRANKFORT. 

&mkm%®  fap  SGGQ)  Wlwlm*  gfciia.,  &pr.  4, 1867. 

At  Sixty  Days'  Sight  of  this  THIRD 
of  Exchange  (First  $■  Second  of  same  tenor  and  date  unpaid)  ;> 
Pay  to  the  Order  of J.  jlEgEEfl  GfUtZ^JfQ, 

-^-^^^^'-^.Five  thousand  Florins. 

for  Value  received,  and  place  the  same  to  account  of 

g^    To  Grants,  Balfour  &.  Co., 
tefe  Frankfort. 


if 


oVVVVV^VyW^WV^ — vyw^^wwwvvwv 


298 


INDORSEMENTS. 


INDORSEMENTS,  ACCEPTANCES,  &J. 

INDORSEMENTS. 

The  word  indorsement  signifies  a  writing  on  the  back  of  a 
bill  or  written  instrument ;  but  it  is  well  settled  that  this  is 
not  essential  in  order  to  charge  a  person  as  an  indorser.  The 
indorsement  may  be  on  any  part  of  the  note,  or  on  a  paper 
annexed  to  it,  and  in  ink  or  pencil ;  but  it  is  better  that  the 
signature  should  be  in  ink,  to  prevent  erasure. 

When  a  note  or  bill  is  drawn  payable  to  a  person  or  his 
order,  it  is  properly  transferable  only  by  indorsement;  nothing 
else,  in  law,  will  hold  the  parties  to  a  note  directly  liable  to 
the  holder. 


1.  INDORSEMENT  IN  BLANK. 

John  S.  Barton. 

2.  INDORSEMENT  IN  FULL. 

Pay  to  Jas.  Jones,  or  order. 
John  S.  Barton. 

3.  QUALIFIED    INDORSEMENT. 

Without  recourse. 
John  S.  Barton. 

4.  RESTRICTIVE    INDORSEMENTS. 

Pay  Robert  Hunter,  for  my  use. 
John  S.  Barton 

Pay  to  Chas.  Harrison  only. 
John  S.  Barton. 


FORMS   OF   INDORSEMENTS. 

5.     CONDITIONAL    INDORSEMENT. 


Pay  George  Gray,  or  order,  the 
within,  unless  before  due  he  receives 
the  amount  from  my  agent. 

John  S.  Barton, 

6.  INDORSEMENT    BY   AN   AGENT. 

John  8.  Barton, 
Agent  for  Howard  Chester. 

7.  A   GUARANTY   ON    A    NOTE. 

For  value  received  in  cash,  I 
hereby  guaranty  the  payment  of 
the  within  Note. 

John  S.  Barton. 


1.  A  blank  indorsement  makes  a  note  transferable  by  mere 
delivery  only,  and  by  it  the  indorser  is  made  liable  for  the 
payment  of  the  note.     If  the  note  or  bill  is  lost  after  such 


INDORSEMENTS.  299 

blank  indorsement,  any  person  who  should  become  the  holdei 
of  it,  in  good  faith,  for  a  valuable  consideration,  without  no- 
tice, would  be  entitled  to  receive  the  amount  thereof. 

2.  Indorsements  in  full  prevent  a  subsequent  holder  from 
recovering  against  the  antecedent  parties,  unless  he  can  de- 
duce a  regular  title  to  the  bill  from  the  person  whose  name 
stands  as  first  indorser. 

If  all  the  subsequent  indorsers  are  in  blank,  the  holder  may 
make  himself  the  immediate  indorsee  of  any  one  of  them,  or 
he  may  deduce-  his  title  through  them  all  in  succession. 

If  some  of  the  subsequent  indorsements  are  in  full  and  some 
in  blank,  then  he  must  make  a  regular  deduction  of  title 
through  them  all,  or  make  himself  the  immediate  indorsee, 
under  some  prior  blank  indorsement. 

Persons  taking  a  bill  or  note  subsequently  to  a  blank  in- 
dorsement may  transfer  it,  either  by  delivery  or  by  indorse- 
ment. 

3.  A  qualified  indorsement  is  one  which  affects  the  liability 
of  the  indorser,  but  not  the  negotiability  of  the  note.  If  the 
holder  of  a  note  wishes  to  transfer  it  without  being  held  liable 
for  its  payment,  he  can  do  so  by  writing  his  signature  and 
adding  " without  recourse"  or  other  words  to  that  effect. 

4.  The  holder  who  has  absolute  property  in  a  bill  or  note 
has  the  power  of  limiting  payment  to  whom  he  pleases.  A 
restrictive  indorsement  will  not,  however,  be  presumed  from 
equivocal  language,  as  restrictive  indorsements  tend  to  impair 
the  negotiability  of 'bills  and  notes. 

5.  If  the  payee  or  indorsee  of  a  bill  or  note  annexes  a  con- 
dition to  his  indorsement,  before  acceptance,  the  drawee  who 
afterwards  accepts  it  is  bound  by  the  condition.  If  the  terms 
of  the  condition  are  not  complied  with,  the  property  in  the 
bill  reverts  to  the  payee,  and  he  may  recover  the  sum  payable 
in  an  action  against  the  acceptor. 

6.  An  agent  should  expressly  indorse  as  agent,  or  write 
the  name  of  his  principal;  otherwise  the  indorsement  would 


300  INDORSEMENTS. 

be  inoperative.  When  an  agent  is  compelled  to  indorse  notes 
or  bills  over  to  his  principal,  to  avoid  responsibility,  he  should 
use  a  restrictive  form  of  indorsement. 

In  Pennsylvania,  a  factor  who  remits  a  bill  to  his  principal, 
in  payment  of  goods  sold  on  his  account,  and  indorses  the 
bill,  does  not  thereby  become  personally  responsible  to  his 
principal,  if  he  receives  no  consideration  for  guaranteeing 
and  does  not  expressly  undertake  to  do  so  4  Rawle,  384- 
389  j  5  Whart.  288. 

An  indorsement  in  the  form  of  A.  B.,  Treasurer  of ■ 

Company,  has  been  held  not  to  render  the  agent  liable  as  an 
indorser,  but  considered  as  intended  only  to  pass  the  paper, 
and  as  equivalent  to  an  indorsement  "without  recourse/' 

7.  An  indorsement  implies  a  contract  to  pay  the  note  if 
dishonored,  if  due  notice  is  given  of  dishonor,  and  not  other- 
wise j  whereas  a  guaranty  implies  a  contract,  if  due  notice  is 
given  of  dishonor  within  a  reasonable  time. 

The  guaranty  should  contain  words  importing  considera- 
tion, and,  unless  made  expressly  negotiable,  is  good  only  to  him 
who  first  takes  the  note  and  advances  money  upon  it.  If  the 
guaranty  is  upon  a  separate  paper,  it  should  describe  the 
note  with  sufficient  distinctness. 

If,  upon  proper  presentation,  payment  of  a  note  or  bill  is 
refused,  the  holder  must  give  prompt  notice  of  such  refusal 
to  each  indorser  whom  he  wishes  to  hold  for  payment,  and 
inform  him  that  he  will  be  held  for  the  payment  of  the  same ; 
otherwise  the  indorser  will  be  discharged.  If  the  holder 
could  delay,  he  might  injuriously  affect  the  indorser,  and  his 
remedy  against  other  persons. 

The  holder  of  a  note  or  bill  may  commence  suit  against 
any  of  the  indorsers,  or  against  all  of  them  at  once. 

When  there  are  several  indorsers,  each  is  liable  to  those 
after  him,  and  should  give  notice  to  all  parties  indorsing  prior 
to  himself. 

Each  indorser  may  require  any  one  whose  name  precedea 


ACCEPTANCES.  301 

his  own  to  make  good  to  him  the  loss  he  may  sustain,  pro- 
vided he  gives  notice  of  his  intention  to  do  so  on  the  day  he 
receives  his  own  notice,  or  the  day  after. 

This  notice  may  be  given  by  any  person  competent  to  serve 
it;  but  a  notary  public  is  usually  employed  for  the  purpose. 


ACCEPTANCES. 

An  Acceptance  is  an  engagement  to  comply  in  whole  or  in 
part  with  the  terms  of  a  bill.  When  the  drawee  engages  to 
pay  according  to  its  terms,  it  is  called  a  general  acceptance  ; 
when  he  agrees  to  pay  with  some  qualification  or  condition 
different  from  the  bill,  it  is  called  a  conditional  or  qualified 
acceptance. 

When  a  bill  is  presented  for  acceptance,  the  drawee  is  en- 
titled to  twenty-four  hours,  if  he  desires  it,  to  decide  whether 
he  will  accept  it  or  not.  In  New  York  and  Missouri,  if  the 
bill  is  not  returned  within  twenty-four  hours,  it  is  deemed  by 
law  to  be  accepted. 

Acceptances  are  usually  written  across  the  face  of  the  bill, 
and,  for  distinctness,  in  red  ink. 

Any  words  not  refusing  its  request,  or  the  signature  of  the 
acceptor  in  blank,  is  prima  facie  evidence  of  acceptance;  and 
when  not  otherwise  provided  for  by  law,  the  acceptance  may 
be  either  verbal  or  in  writing, — a  written  acceptance,  of  course, 
being  more  easily  susceptible  of  proof. 

In  New  York  it  is  held  that  no  person  shall  be  charged  as 
an  acceptor  of  a  bill  of  exchange  unless  the  acceptance  be  in 
writing,  and  every  holder  may,  on  presentation  of  the  bill, 
require  that  the  acceptance  be  written  on  the  bill,  and  if  such 
acceptance  is  refused,  the  bill  may  be  protested  for  non- 
acceptance. 

The  holder  may  assent  to  a  qualified  acceptance,  and  it  will 

be  good  as  far  as  it  extends;  but  he  takes  it  at  his  own  risk, 

and  he  must  give  notice  to  the  antecedent  parties,  or  they  will 
26 


302  AGENCY. 

not  otherwise  be  held  bound  by  it.  The  condition  of  the 
acceptance  should  appear  upon  the  face  of  the  acceptance  in 
writing,  as  any  subsequent  holder  for  value,  without  notice, 
would  not  be  bound  by  verbal  conditions. 

The  holder  is  not  bound  to  take  any  but  an  unqualified  or 
unconditional  acceptance;  and  when  refused,  if  he  wishes  to 
maintain  a  claim  against  the  other  parties,  he  should  treat  the 
bill  as  dishonored,  unless  they  assent  to  the  proposed  condi- 
tional acceptance.  If  the  holder  declines  the  conditional 
acceptance,  it  will  be  a  waiver  of  all  right  to  hold  the 
drawee. 

Form  of  Conditional  Acceptance  written  across  the  face  of  a  Draft. 

"Accepted  if  in  funds  from  consignment  shipped  us  on  3d 
instant.  Roger  B.  Gray. 

"New  York,  Oct.  17/66." 

AGENCY. 

An  Agent  is  a  person  having  power  to  act  for  another, 
who  is  called  a  principal. 

A  man  may  do  by  his  agent  whatever  he  can  lawfully  do 
himself,  and  his  agent  can  do  for  him. 

A  General  Agent  is  one  appointed  to  transact  all  the  busi- 
ness of  his  principal,  or  all  his  business  of  a  particular  kind. 

A  Special  Agent  is  appointed  for  a  specific  and  particular 
purpose. 

A  Broker  is  an  agent  employed  to  negotiate  between 
other  parties,  and  is  presumed  to  act  in  the  name  of  his 
principal. 

A  Factor  or  Commission  Merchant  is  an  agent  to  sell 
goods  for  his  principal,  but  who  acts  for  several  persons  in 
that  capacity.  He  differs  from  the  broker  in  having  actual 
possession  of  the  goods.  A  Factor  may  buy  and  sell  in  his 
own  name  as  well  as  in  the  name  of  his  principal. 


AGENCY.  303 

An  Attorney  is  an  agent  acting  in  behalf  of  his  client. 

The  authority  of  an  agent  may  be  constituted  in  three 
ways :  by  deed  under  seal,  by  a  writing  without  seal,  or  by 
mere  words. 

The  authority  of  an  agent  may  be  revocable  or  irrevocable. 
It  is  irrevocable  when  an  interest  in  the  subject-matter  is 
conveyed  to  the  agent,  or  the  authority  is  given  for  a 
valuable  consideration;  it  is  revocable  when  no  interest  is 
conveyed,  in  which  case  the  principal  can  revoke  the  author- 
ity at  his  pleasure,  subject  in  some  cases  to  a  claim  for 
damages. 

An  agency  may  be  revoked  by  the  operation  of  law,  by 
expiration  of  time,  by  changes  producing  incapacity  to  act, 
by  the  extinction  of  the  subject-matter  or  its  complete  fulfil- 
ment, or  by  the  death  of  the  principal.  A  power  of  attorney 
to  sell  goods  or  stocks  ceases  with  the  life  of  the  principal, 
and  upon  his  death  may  become  valueless. 

Where  the  conveyance  or  any  act  is  required  to  be  under 
seal,  the  authority  to  execute  it  must  be  under  seal  also. 

Verbal  authority,  ordinarily,  is  sufficient;  but  an  agent 
ought,  for  his  own  security,  to  act  under  written  authority, 
and  to  disclose  his  character  whenever  he  executes  a  con- 
tract. In  signing  his  name,  the  mere  use  of  the  word 
"agent"  is  not  sufficient;  the  name  of  the  principal  must 
also  appear.  Instead  of  writing  "Henry  Grant,  Agent/'  it 
should  be  "  R.  Brown,  per  Henry  Grant;"  or,  "  R.  Brown, 
by  his  attorney,  Henry  Grant." 

If  an  agent  does  an  act  or  makes  a  contract  unauthorized 
by  his  principal,  though  in  the  name  of  the  principal,  he  is 
personally  liable;  but  if  the  principal,  with  the  knowledge 
of  all  the  facts,  adopts  or  acquiesces  in  the  acts  done  under 
an  assumed  agency,  he  cannot  afterwards  impeach  them  under 
the  pretence  that  they  were  done  without  authority,  or  even 
contrary  to  instructions.  If  the  principal  does  not  dissent 
and  give  notice  of  it  within  a  reasonable  time  after  being  in- 


304  POWER    OF   ATTORNEY. 

formed  of  what  has  been  done,  his  assent  and  satisfaction 
will  be  presumed. 

"An  agent  is  personally  liable  if  he  makes  himself  so  ex- 
pressly, or  if  he  transcends  his  authority  or  departs  from  its 
terms  and  directions,  or  if  he  conceals  his  character  as  agent, 
or  if  he  purposely  conceals  the  name  of  his  principal,  or, 
perhaps,  if  he  does  not  actually  state  the  name  of  his  prin- 
cipal." 

It  is  the  duty  of  the  agent  to  follow  implicitly  his  instruc- 
tions, and  to  keep  his  principal  fully  and  promptly  informed 
in  regard  to  the  business  intrusted  to  him. 

An  agent  is  liable  for  interest  if  he  has  made  it  on  the 
money  in  his  hands,  but  not  if  it  has  lain  idle. 

As  a  general  rule,  an  agent  cannot  appoint  a  substitute,  or 
delegate  his  authority  to  another.  But  a  power  of  substitu- 
tion may  be  expressly  given,  or  it  may  be  inferred  from  the 
nature  of  the  act  to  be  performed,  or  where  there  is  a  known 
and  established  custom  of  substitution. 


POWER  OF  ATTORNEY. 

A  Power  of  Attorney,  or  Letter  of  Attorney,  is  a  written 
instrument,  usually  under  seal,  by  which  authority  is  given 
to  one  person  to  perform  some  lawful  act  for  another. 

Authority  to  execute  a  deed  must  be  given  under  seal,  and 
be  acknowledged  by  both  husband  and  wife,  and  must  be 
done  in  the  name  of  the  principal. 

Upon  the  death  of  the  principal,  the  authority  delegated 
by  power  of  attorney  ceases,  and  all  subsequent  acts  under  it 
are  void. 

The  authority  intended  to  be  conferred  should  be  expressed 
in  clear  and  intelligible  terms,  and  be  properly  executed, 
attested,  and  acknowledged. 


POWER    OF    ATTORNEY.  305 


FORM    OF   POWER    OF   ATTORNEY. 

Jfoofo  all  Pen  bg  ttyst  fronts,  That  I, 

of  ,  County  of  ,  and  State 

of  ,  have  made,  constituted,  and  appointed, 

and  1*7  these  presents  do  make,  constitute,  and  appoint 

,  of  ,  County  of  , 

and  State  of  ,  my  true  and  lawful  attorney, 

for  me,  and  in  my  name,  place,  and  stead,  and  in  my  behalf,  to  (here 
insert  the  things  which  the  attorney  is  to  do) ;  giving  and  granting 
unto  my  said  attorney  full  power  and  authority  generally  to  do  and 
perform  all  and  every  act  and  thing  whatsoever  requisite  or  proper 
to  effectuate  all  or  any  of  the  premises,  with  the  same  powers,  and 
to  all  intents  and  purposes  with  the  same  validity,  as  I,  if  personally 
present,  could  (giving  and  granting,  also,  unto  my  said  attorney 
full  power  to  substitute  one  or  more  attorney  or  attorneys  under 
him  my  said  attorney  in  or  concerning  the  premises,  or  any  part 
thereof,  and  the  same  at  his  pleasure  to  revoke ;  and)  hereby  ratify- 
ing and  confirming  whatsoever  my  said  attorney  (or  liis  substitute 
or  substitutes)  shall  and  may  do  by  virtue  hereof  in  the  premises. 

Hit  Witness  foljmof,  I  have  hereunto  set  my  hand  and  affixed 
my  seal,  this  eighteenth  day  of  September,  in  the  year  of  our  Lord 
18 

Signed,  sealed,  and  delivered  [Seal.] 

in  the  presence  of 

Henry  R.  Linden, 
Wm.  H.  Moult. 

N.B. — By  omitting  the  words  in  brackets,  no  power  to  appoint  a 
substitute  is  given. 

SHORT    FORM. 

Jfoofo  all  Pert  bg  i\t$z  |)r*sents,  That 

dc  make,  constitute,  and  appoint 

true  and  lawful  Attorney     for  and  in  name 

with  power,  also,  an  attorney  or  attorneys  under  for 

that  purpose  to  make  and  substitute,  and  to  do  all  lawful  acts  re- 
quisite for  affecting  the  premises ;  hereby  raitfying  and  confirm- 
U  26* 


306  POWER   OF   ATTORNEY. 

ing  all  that  the  said  attorney  or  substitute  or  substitutes  shall  do 
therein  by  virtue  of  these  presents. 

|tt  WtttntSS  foljereof,  have  hereunto  set  hand      and 

seal     the  day  of  ,  in  the  year  of  our  Lord 

one  thousand  eight  hundred  and  .  [l.s.] 

Signed,  sealed,  and  delivered 
in  the  presence  of 

POWER   TO   TRANSFER    STOCK. 

$nofo  all  Pen  bg  %se  presents,  That  I,  K.  W.  Y.,  of  Oswego, 
County  of  Oswego,  and  State  of  New  York,  do  make,  constitute,  and 
appoint  Leonard  D.  Gray,  of  the  same  place,  my  true  and  lawful 
attorney,  for  me,  and  in  my  name  and  behalf,  to  sell,  transfer,  and 
assign  unto  Hosea  W.  Hunter,  of  said  Oswego  (or,  any  other  person 
or  persons),  One  Hundred  Shares  in  the  capital  stock  of  the  Syracuse 
National  Bank,  in  Syracuse,  State  of  New  York,  standing  in  my 
name  on  the  books  of  said  corporation  ;  and  to  do  all  necessary  acts 
and  to  make  the  necessary  acquittances  and  discharges  to  effect  the 
premises  (add,  if  desired,  and  I  do  further  empower  him  to  substi- 
tute any  person  or  persons  under  him,  with  like  power) ;  hereby 
ratifying  and  confirming  all  my  said  attorney  (or  his  substitute  or 
substitutes)  shall  lawfully  do  by  virtue  hereof. 

$[n  Witness  tobereflf,  &c. 


POWER    TO   RECEIVE    DIVIDEND. 

|hrofo  all  Pen  bg  these  presents,  That  I,  H.  Y.  Bell,  of  Oswego, 
County  of  Oswego,  State  of  New  York,  do  constitute  and  appoint 
Hiram  Howell,  of  Meridian,  Cayuga  county,  to  receive  from  the 
Cashier  of  the  Oswego  National  Bank  the  dividend  or  dividends 
now  due  me  on  all  stock  standing  to  my  name  on  the  books  of  the 
said  bank,  and  to  receipt  for  the  same ;  hereby  ratifying  and  con- 
firming all  that  by  him  may  lawfully  be  done  by  virtue  hereof  in 
the  premises. 

Witness  my  hand,  etc. 

Signed  and  delivered  in  presence  of,  &c. 


SEALED    INSTRUMENTS.  307 


SEALED   INSTRUMENTS 

A  contract  which  is  under  seal  is  called  in  law  a  specialty. 
Bonds  are  of  this  class.  All  other  contracts,  whether  oral  or 
in  writing,  are  called  'parole  contracts.  A  specialty  is  dis- 
tinguished from  a  simple  contract  by  its  seal.  An  impression 
upon  wax,  wafer,  or,  as  in  most  of  our  States,  a  scrawl  of  ink, 
attached  to  the  signature,  is  regarded  as  a  sufficient  seal. 
A  seal  implies  consideration,  and  is  in  general  absolute ;  but 
in  New  York  a  seal  is  only  prima  facie  evidence  of  con- 
sideration, which  may  be  rebutted  as  if  the  instrument  were 
not  sealed. 

A  specialty  is  not  negotiable  like  a  promissory  note :  it 
may  be  assigned,  however  (see  Form  of  Assignment),  the 
assignee  taking  it  at  his  own  peril,  and  having  only  the  rights 
of  the  original  obligee :  if  the  obligor  has  any  set-off  or 
claim  against  the  obligee  at  the  time  of  the  assignment,  the 
assignee  will  be  compelled  to  allow  it. 

If  the  assignee,  previous  to  taking  the  assignment,  obtains 
from  the  obligor  an  admission  in  writing,  or  in  the  presence 
of  witnesses,  that  he  has  no  defence  or  set-off,  the  obligor  is 
liable  to  the  assignee  for  the  whole  amount. 

In  Pennsylvania,  and  in  some  other  States,  bonds  are  made 
legally  assignable;  and  the  assignees  can  sue  in  their  own 
name  when  they  are  for  payment  of  money,  and  drawn  u  to 
order"  or  "  to  assigns,"  and  the  assignment  is  "  under  hand 
and  seal"  and  in  the  presence  of  two  or  more  witnesses ;  the 
intent  of  the  act  being  to  enable  the  assignee  to  sue  in  his 
own  name  and  prevent  the  obligee  from  releasing  after 
assignment. 

If  they  are  not  drawn  in  the  above  form,  bonds  may  be 
assigned  for  a  valuable  consideration,  with  permission  to  sue 
in  the  assignor's  name. 


308  BONDS. 

The  indorsement  in  blank  of  a  specialty  does  not  make 
the  indorser  liable  as  in  the  case  of  a  negotiable  note. 

An  instrument  under  seal  is  not  barred  by  the  statute  of 
limitations,  and,  if  originally  good,  is  so  for  twenty  years. 

BONDS. 

A  bond  is  an  obligation  for  the  payment  of  money,  or  for 
the  performance  or  non-performance  of  certain  acts,  with  a 
penalty  annexed  in  case  of  failure  to  comply  with  the  con- 
ditions of  the  bond.  It  requires  no  technical  words :  any 
sealed  writing  which  distinctly  acknowledges  a  debt  is  a 
bond  j  but  generally  there  is  a  condition  added,  that  if  the 
obligor  does  some  particular  act,  the  obligation  shall  be  void, 
or  else  shall  remain  in  full  force. 

The  penalty  in  a  bond  is  usually  double  the  amount  of  the 
real  debt,  for  the  purpose  of  covering  the  full  debt,  together 
with  interest  and  costs.  All  that  can  be  recovered  of  a 
penalty  in  a  bond,  in  addition  to  the  amount  of  the  debt,  is 
the  interest  and  costs;  but  when  a  specified  amount  is 
agreed  upon  for  liquidating  damages,  it  must  be  distinctly 
so  expressed,  and  then  such  specified  sum  is  the  amount  to 
be  paid. 

Where  it  is  the  intention  to  bind  the  heirs  of  the  obligor, 
the  term  heirs  must  be  named.  Executors  and  administrators 
are  bound  though  not  named. 

If  the  obligation  of  a  bond  becomes  impossible  by  the  act 
of  God,  after  making  it,  the  penalty  is  saved ;  if  it  be  im- 
possible at  the  time  of  making  it,  it  is  said  the  condition  alone 
is  void,  and  the  bond  shall  stand,  single  and  unconditional. 

Where  several  payments  are  due  at  different  times  on  a 
bond,  if  one  payment  is  delayed  and  the  bond  is  so  drawn, 
judgment  may  be  recovered  for  the  whole  of  the  real  debt, 
with  stay  of  execution  on  the  several  payments  till  such 
Bpecified  times  as  those  payments  become  due. 


BONDS.  309 


COMMON  FORM  OF  BOND. 

Itnofcr  all  pta  bg  %se  |j ascitis,  that  I,  ,  m  the 

county  of  and  State  of  ,  am  hell  and  firmly 

bound  unto  ,  of  ,  in  the  county  of 

and  State  aforesaid,  in  the  sum  of  One  Thousand  Dollars,  lawful 
money  of  the  United  States,  to  be  paid  to  the  said  ,  or 

his  certain  attorney,  executors,  and  administrators  or  assigns;  to 
which   payment,  well  and  truly  to  be  made  and  done,   I  do  bind 
myself,  my  heirs,  executors,  and  administrators,  and  every  of  them, 
firmly  by  these  presents.    Sealed  with  my  seal,  and  dated  the 
day  of  ,  Anno  Domini  one  thousand  eight  hundred  and 

The  condition  of  this  obligation  is  such,  that  if  the  above 
bounden  ,  his  heirs,  executors,  administrators,  or  any 

of  them,  shall  and  do  well  and  truly  pay,  or  cause  to  be  paid,  unto 
the  above-named  ,  his  executors,  administrators,  or 

assigns,  the  just  and  full  sum  of  Five  Hundred  Dollars,  lawful 
money,  aforesaid,  with  legal  interest  for  the  same,  on  or  before 
the  day  of  next,  without  fraud  or  further  delay, 

then  the  above  obligation  to  be  void  and  of  none  effect,  or  else  to 
be  and  remain  in  full  force  and  virtue. 

Signed,  sealed,  and  delivered  in  [Seal.] 

the  presence  of 

CLAUSE  FOR  JUDGMENT  BOND. 

And  I  do  hereby  authorize  and  empower  any  attorney  of  any 
court  of  record  in  the  State  of  ,  or  elsewhere,    to  enter 

judgment  against  me,  my  heirs,  executors,  and  administrators,  and 
in  the  favor  of  the  above-named  ,  his  executors,  adminis- 

trators, or  assigns,  for  the  above  sum,  as  of  the  past,  present,  or 
any  future  term  of  said  court,  with  release  of  errors,  costs  of 
suit,  &c. 

INTEREST    CLAUSE. 

And  it  is  hereby  expressly  agreed,  that  should  any  default  be 
made  in  the  payment  of  the  said  interest,  or  of  any  part  thereof, 
on  any  day  whereon  the  same  is  made  payable,  as  above  ex- 
pressed, and  should  the  same  remain  unpaid  and  in  arrear  for 
the  space  of  thirty  days,    then   and  from   thenceforth,   that  is  to 


310  RELEASE. 

Bay,  after  the  lapse  of  the  said  thirty  days,  the  aforesaid  principal 
sum  of  Five  Hundred  Dollars,  together  with  all  arrearage  of  in- 
terest thereon,  shall,  at  the  option  of  the  said  ,  his 
executors,  administrators,  and  assigns,  become  and  be  due  and 
payable  immediately  thereafter,  although  the  period  above  limited 
for  the  payment  thereof  may  not  then  have  expired,  any  thing 
hereinbefore  contained  to  the  contrary  notwithstanding. 


SEALED   RECEIPT   OR   RELEASE. 

GENERAL    RELEASE    OF    ALL    DEMANDS. 

Jtitofa  sll  HUtt  ug  lljcse  Jjwsmts,  that  I,  Howard  C.  Burton,  of 
New  York,  for  and  in  consideration  of  the  sum  of  Three  Hundred 
and  Seventy-Five  Dollars  to  me  paid  by  George  C.  Taylor,  of  Phi- 
ladelphia, the  receipt  of  which  I  do  hereby  acknowledge,  have  re- 
mised, released,  and  forever  discharged,  and  I  do  for  myself,  my 
heirs,  executors,  and  administrators,  remise,  release,  and  forever 
discharge,  the  said  George  C.  Taylor,  his  heirs,  executors,  and 
administrators,  of  and  from  all  debts,  demands,  actions,  and  causes 
of  action,  in  law  or  equity,  of  every  kind,  character,  and  nature 
soever,  against  him,  from  the  beginning  of  the  world  to  this  day. 

Jftt  fethttOltg  foljereof,  I  have  hereto  set  my  hand  and  seal,  this 
thirteenth  day  of  July,  a.d.  1865. 

Signed,  sealed,  and  Howard  C.  Burton.     [Seal.] 

delivered  in  presence  of 
Ethan  Young, 
Alex'r  R.  Rundle. 

A  Deed  is  a  writing  or  instrument  sealed  and  delivered. 
As  generally  used,  it  is  a  writing  for  the  conveyance  of  pro- 
perty. 

In  Pennsylvania,  a  scroll  enclosing  the  word  "seal,"  or 
"L. S.,"  is  a  good  and  valid  seal;  but  not  in  all  the  States. 

A  Fee-Simple  interest  is  the  absolute  ownership  in  an 
estate. 

A  Warranty  Deed  is  so  called  because  the  grantor  cove- 
nants to  insure  and  defend  the  lands  mentioned  against  the 
persona  and  to  the  extent  specified. 


SEALED    INSTRUMENTS.  311 

A  General  Warranty  covenants  and  warrants  against 
all  persons  whatsoever;  a  Special  Warranty,  only  against 
himself,  his  heirs,  and  those  claiming  under  him.  Deeds  by 
executors,  administrators,  or  guardians  generally  contain  no 
warranty ;  and  every  requisition  of  the  law  should  be  com- 
plied with,  to  obtain  a  good  title. 

A  Quit-Claim  Deed  is  one  which  conveys  all  the  interest 
which  the  grantor  may  possess,  whatever  it  may  be,  in  the 
land  specified. 

A  I>eed  Poll,  or  Single  Deed,  like  a  quit-claim  deed, 
is  made  by  one  party  only  (for  example,  a  sheriff's  deed). 

A  Trust  Deed  is  given  to  persons  to  hold  for  the  use  of 
some  other  person  who  is  entitled  to  the  proceeds,  profits,  or 
use  of  the  property. 

A  Ground-Rent  Deed  conveys  land,  with  a  reservation 
of  a  certain  sum  of  money  in  the  nature  of  rent,  to  be  paid 
at  specified  times,  and  may  be  for  life,  for  a  term  of  years,  or 
in  fee. 

A  mortgage  is  a  conditional  conveyance  of  property  as  a 
pledge  for  the  security  of  a  debt. 

All  kinds  of  property,  real  and  personal,  which  may  be  sold 
absolutely  may  be  mortgaged.  As  a  general  thing,  chattel 
mortgages,  or  mortgages  on  personal  property,  are  not  good 
against  third  parties  or  creditors  unless  the  property  is  actu- 
ally delivered,  or  the  mortgage  acknowledged  and  recorded. 

When  a  mortgage  is  paid  by  instalments,  each  payment 
should  be  receipted  upon  the  record  of  the  mortgage  as  it  is 
made. 

When  the  debt  is  paid,  the  mortgagee  is  bound  under  a 
penalty  to  enter  satisfaction  on  the  records  within  a  limited 
time ;  and  care  should  be  taken  by  the  mortgagor  that  it  be 
done.  If  the  death  or  removal  of  the  mortgagee  occur  before 
satisfaction  is  entered,  petition  should  be  made  to  the  Court 
of  Common  Pleas  that  it  may  be  so  ordered. 


312  CONTRACTS. 


CONTRACTS. 


A  contract  is  an  agreement,  upon  sufficient  consideration, 
to  do,  or  not  to  do,  some  specified  thing. 

A  consideration  may  be  any  benefit  to  the  party  promising, 
or  some  trouble  or  injury  to  the  party  receiving  the  promise. 

In  general,  an  offer  or  proposal  becomes  a  contract  as  soon 
as  it  is  accepted,  and  acceptance  may  be  made  before  the 
expiration  of  the  time  limited,  or  at  any  reasonable  time  before 
knowledge  of  a  retraction  of  the  offer. 

In  the  majority  of  the  United  States,  no  action  can  be 
brought  against  a  person  upon  an  agreement  not  to  be  per- 
formed within  one  year  from  the  making  of  it,  unless  some 
note  or  memorandum  of  the  agreement  be  signed  by  the  party 
to  be  charged,  or  his  lawfully  appointed  agent. 

Persons  under  twenty-one  years  of  age,  married  women, 
and  insane  persons,  are  incompetent  to  make  a  contract.  A 
minor,  however,  may  contract  for  necessaries ;  so,  also,  may  a 
married  woman  when  her  husband,  without  good  reason,  re- 
fuses to  make  suitable  provision  for  her. 

The  subject-matter  of  the  contract  must  be  possible ;  it  must 
also  be  lawful.  A  contract  founded  upon  fraud,  or  to  do  an 
illegal  or  immoral  act,  is  void.  A  contract  in  total  restraint  of 
the  exercise  of  a  man's  trade  or  profession  would  not  be  enforced 
by  the  courts,  because  it  is  against  public  policy;  but  a  con- 
tract restraining  him  in  any  particular  city  or  place  is  valid. 

Care  bestowed  in  clearly  expressing  the  contract  in  plain 
and  unambiguous  language,  may  be  the  means  of  preventing 
lawsuits  and  the  loss  of  friendship  as  well  as  the  loss  of 
money.  "  Three  things  should  be  attended  to  in  writing  a 
contract.  1st.  Weigh  well  your  words,  and  ascertain  their 
exact  import  or  value.  2.  Use  enough  of  them  to  express  all 
that  you  mean  or  intend  by  the  contract.  3d.  Arrange  them 
in  such  a  manner  that  they  have  but  one  meaning,  and  that 
the  meaning  you  intend." — Hon.  Joel  Jones. 


FORM    OF    AGREEMENT.  313 

Verbal  evidence  may  be  admitted  to  explain,  bi.fc  not  to 
change,  the  original  contract. 

Contracts  of  Sale. — A  sale  is  a  contract  for  the  transfer 
of  property  for  a  valuable  consideration.  The  subject-matter 
and  the  price  must  be  certain,  or  capable  of  being  made  so, 
to  constitute  a  sale.  The  subject-matter  should  be  perfectly 
identified,  ascertained,  and  designated,  so  as  to  be  distinguished 
from  every  thing  else.  After  the  sale  is  completed,  the  goods 
are  at  the  risk  of  the  purchaser. 

If  in  a  contract  for  the  sale  of  goods  no  time  be  mentioned 
for  payment,  the  law  implies  a  contract  to  pay  for  them  on 
delivery,  and  the  buyer  is  entitled  to  the  goods  only  on  pay- 
ment or  tender  of  the  price.  The  buyer  acquires  a  right  of 
property  by  the  contract,  but  until  he  pays  or  tenders  the 
price  he  does  not  acquire  a  right  of  possession.  If  the  sale 
be  made  upon  credit  and  nothing  be  said  as  to  the  time  of 
delivery,  the  buyer  is  entitled  to  possession  immediately; 
although  the  seller  can  reclaim  the  goods  if  the  buyer  is 
insolvent  and  they  are  in  the  hands  of  a  common  carrier  or 
have  not  yet  come  into  the  actual  possession  of  the  buyer. 

In  the  several  States,  excepting  Louisiana,  no  contract  for 
the  sale  of  any  goods  is  binding,  when  the  price  is  above  a 
certain  sum,  unless  the  buyer  shall  accept  part  of  the  goods 
so  sold  and  actually  receive  the  same  or  give  something  in 
part  payment,  or  unless  some  writing  of  such  bargain  be  made 
and  signed  by  the  party  to  be  charged.  The  sum  required  in 
Massachusetts  and  New  York  is  $50 ;  in  Vermont,  $40  j  in 
Connecticut,  §35;  in  New  Hampshire,  $33.33;  and  in  New 
Jersey,  $30. 

In  dissolving  a  contract,  the  law  requires  that  it  shall  be 
done  by  the  same  means  that  render  it  binding :  if  the  con- 
tract was  under  seal,  the  release  or  discharge  must  be  under 
seal  also ;  if  the  contract  was  required  by  law  to  be  in  writing, 

it  cannot  be  dissolved  by  a  verbal  agreement. 

27 


314  AGREEMENT    OF    SALE. 


GENERAL    FORM    OF   AGREEMENT. 
t^IS  JtgreOTUlti,  made  the  sixteenth  day  of  February,  ..d.  1868, 
between  John  T.  Evans,  of  Sandusky,  County  of  Erie  and  State  of 
Ohio,  of  the  first  part,  and  Henry  W.  Ward,  of  Houston,  County 
of  Shelby  and  State  aforesaid,  of  the  second  part, 

SSIttlUSSCtlj,  That  the  said  John  T.  Evans,  for  the  consideration 
hereinafter  mentioned,  doth  covenant  and  agree  to  and  with  the  said 
Henry  W.  Ward,  that  {here  insert  the  agreement  on  the  part  of  Evans). 
And  the  said  Henry  W.  Ward,  in  consideration  of  the  covenant 
of  the  said  party  of  the  first  part,  doth  hereby  covenant  and  agree 
to  and  with  the  said  John  T.  Evans,  that  [here  insert  the  agreement  on 
the  part  of  Ward). 

|ftt  SStittUSS  ulljmof,  we  have  hereunto  set  our  hands  and  seals, 
the  year  and  day  first  above  written. 
Signed,  sealed,  and  delivered 

in  presence  of  John  T.  Evans.      [Seal.] 

Edward  P.  Hartell.  Henry  W.  Ward.  [Seal.] 

Thos.  J.  Turner. 

AGREEMENT   OF    SALE. 

^Stjgmnttnf  made  this  day  between  Thomas  J.  Raymond,  of  New 
York  City,  of  the  first  part,  and  Leonard  Munroe,  of  said  city,  of  the 
other  part,  as  follows  : — 

Said  Thomas  J.  Raymond,  for  the  consideration  hereinafter  men- 
tioned, doth  hereby  agree  to  deliver  to  said  Leonard  Munroe,  at  his 
store  in  said  city,  as  the  same  may  be  required  from  time  to  time, — 
the  whole  to  be  delivered  before  the  first  day  of  May  next  ensuing 
the  date  hereof, — two  thousand  pounds  Old  Government  Java  Coffee, 
equal  to  a  sample  exhibited. 

In  consideration  whereof,  said  Leonard  Munroe  hereby  agrees  to 
pay  to  the  said  Thomas  J.  Raymond  twenty  cents  per  pound  for 
each  and  every  pound  so  delivered,  in  the  notes  of  the  said  Leonard 
Munroe,  payable  three  months  after  date,  to  be  given  at  the  end 
of  each  and  every  month,  for  the  amount  of  coffee  then  delivered 
under  this  agreement. 

SSlitness  the  said  parties,  at  New  York,  this  day  of  , 

a.d.  one  thousand  eight  hundred  and  sixty 

W.  P.  Thornton.  1  „r.  Thos.  J.  Raymond. 


>  Witnesses  present 


K.  M.  Wilson.       I  Leonard  Munroe. 


BILL  OF  SALE.  315 


A  BILL  OF  SALE  OF  GOODS. 

JUtsfe  all  glen  bg  these  presents,  that  I,  Jared  K.  Long,  of  Buf- 
falo, for  and  in  consideration  of  the  sum  of  five  hundred  dollars  to 
me  in  hand  paid  by  John  Cottrell,  of  the  same  place,  at  and  before  the 
sealing  and  delivery  of  these  presents,  the  receipt  whereof  is  hereby 
acknowledged,  have  bargained,  sold,  and  delivered,  and  by  these 
presents  do  bargain,  sell,  and  deliver,  unto  the  said  J.  Cottrell,  One 
Thousand  (1000)  bbls.  Linseed  Oil,  now  in  store  at  Pittsburgh,  Pa. 

&0  hnbz  attb  to  Jjolfr  the  said  goods  unto  the  said  J.  Cottrell,  his 
executors,  administrators,  and  assigns,  to  his  and  their  own  proper 
use  and  benefit  forever.  And  I,  the  said  Jared  K.  Long,  fox  my- 
self and  my  heirs,  executors,  and  administrators,  will  warrant  and 
defend  the  said  bargained  premises^unto  the  said  J.  Cottrell,  his 
executors,  administrators,  and  assigns,  from  and  against  all  persons 
whomsoever. 

Witness  my  hand  and  seal,  this  tenth  day  of  March,  1868. 

Sealed  and  delivered  in 

the  presence  of  Jared  K.  Long.     [l.  s.] 

Jas.  Clark. 
Henry  R.  Damon. 


AFFIDAVIT   FOR   GOODS    SOLD   AND   DELIVERED. 

State  of  ,  County  of  ,  ss. 

Francis  J.  Murray,  of  ,  in  said  county,  being  duly 

sworn  [or  affirmed),  deposes  and  says  that  Byron  C.  Gates,  of 

,  county  of  and  State  of  ,  is  justly  and 

truly  indebted  unto  him,  the  deponent,  in  the  sum  of 
dollars,  for  goods  sold  and  delivered  by  him  to  the  said  Byron  C. 
Gates ;  and  that  he  has  given  credit  to  the  said  Byron  C.  Gates  for 
all  payments  and  set-offs  to  which  he  is  entitled  ;  and  that  the 
balance  claimed,  according  to  the  foregoing  account,  is  justly  due ; 
and  that  the  said  account  is  correctly  stated. 

Sworn  and  subscribed,  this        day  of         ,  a.d.  1868,  before  me, 

Henry  C.  Beach, 
Commissioner  for  the  State  of 


316  GUARANTEES. 


GUARANTEES. 

A  guarantee  is  an  engagement  whereby  one  man,  called  the 
guarantor,  binds  himself  as  security  for  the  performance  of 
certain  acts  by  another. 

A  guarantee,  to  be  binding,  should  be  for  a  consideration  j  as 
in  law  all  promises  made  without  a  consideration  are  valueless. 

Though  not  always  necessary,  it  is  preferable  that  the  gua- 
rantee be  in  writing ;  because  the  evidence  of  the  fact  is  then 
so  much  easier  of  proof.  In  some  States,  the  guarantee  must 
express  the  consideration  for  which  it  was  granted. 

Guarantees  of  commission-merchants,  binding  them  to 
warrant  the  solvency  of  the  purchasers  of  the  goods  they  sell 
on  credit,  need  not  be  in  writing. 

The  words  of  a  guarantee  should  be  strictly  construed,  and 
not  taken  to  mean  more  or  less  than  the  words  clearly  ex- 
press. A  guarantor  is  not  liable  beyond  the  scope  of  his 
engagement :  a  mere  recommendation  or  overture  to  guara-ntee 
is  not  sufficient. 

A  guarantee  must  be  accepted,  to  make  it  a  contract;  and 
the  guarantor  must  have  notice,  either  direct  or  implied,  of 
its  acceptance  within  a  reasonable  time. 

In  Pennsylvania,  by  act  of  April  26,  1855,  no  action  shall 
be  brought  upon  any  special  promise  to  answer  for  the  debt 
or  default  of  another,  unless  the  agreement,  or  some  memo- 
randum or  note  thereof,  be  in  writing.  This  act  does  not 
apply  to  contracts  in  which  the  consideration  is  less  than 
twenty  dollars. 

Guarantees  do  not  continue  to  transactions  which  take 
place  after  a  change  is  made  in  the  firm  to  which  they  were 
given,  unless  such  change  is  expressly  provided  for. 

In  some  States,  unless  the  creditor  2an  show  that  it  would 
be  useless  to  proceed  against  the  debtoi ,  he  must  first  institute 
proceedings  against  him  before  he  can  resort  to  the  guarantor. 


GUARANTEES.  317 

A  guarantor,  after  paying  the  debt,  has  a  right  to  substi- 
tute himself  in  the  place  of  the  creditor,  and  is  entitled  to 
receive  from  him  all  the  securities  held  by  him  for  the  prin- 
cipal debt. 

Guarantee  of  a  Debt  not  yet  incurred!. 

Pittsburgh,  Dec.  8,  1SC-5. 
Messrs.  Geo.  H.  Stuart  &  Bro., 

13  Bank  Street,  Philadelphia. 
Gentlemen  : — The  bearer,  Mr.  Henry  G.  Layton,  of  this  place, 
intends  visiting  your  city  for  the  purpose  of  purchasing  goods. 
Should  you  be  disposed  to  furnish  him  with  such  goods  as  he  may 
call  for,  we  hereby  guarantee  the  payment  for  any  purchases  he 
may  make  within  one  month  from  this  date,  to  any  amount  not  ex- 
ceeding five  thousand  dollars.     Yours,  truly, 

S.  T.  Humboldt  &  Co. 

Note. — The  consideration  in  the  above  guarantee  is  the  selling  of  goods 
on  credit  to  H.  G.  Layton. 

Another. 

Cincinnati,  Dec.  11, 1865. 
Geo.  H.  Whelan,  Esq. 

Dear  Sir  : — I  hereby  guarantee  the  payment  of  any  bill  or  bills 
of  merchandise  Mr.  J.  L.  Johnson  may  purchase  from  you,  the 
amount  of  this  guarantee  not  exceeding  five  hundred  dollars  ($500), 
and  to  expire  at  the  end  of  three  months  from  date 

Respectfully,  yours, 

Benjamin  Patten. 


Guarantee  of  a  Debt  already  incurred. 

Louisville,  Ky.,  Feb.  19,  1868. 
Messrs.  M.  C.  Harrison  &  Co., 

New  Orleans. 
Gentlemen  : — In  consideration  of  one  dollar,  paid  me  by  your- 
selves, the  receipt  of  which  I  hereby  acknowledge,  I  guarantee  that 
the  debt  of  four  hundred  dollars,  now  owing  to  you  by  George  W. 
Perkins,  shall  be  paid  at  maturity.     Very  respectfully,  yours, 

Leonard  II.  Morton. 
27* 


318  PARTNERSHIP. 


PARTNERSHIP. 


A  Partnership  is  a  voluntary  contract  between  two  or 
more  persons  to  place  their  property,  labor,  or  credit,  or  some 
or  all  of  them,  in  some  lawful  business,  and  to  divide  the 
profit,  or  bear  the  loss,  in  certain  proportions.     (See  p.  174  ) 

A  partnership  is  not  constituted  merely  by  an  interest,  but 
depends  on  the  joint  liability  to  loss,  as  well  as  on  the  par- 
ticipation in  the  profits.  A  stipulated  portion  of  the  profits 
as  mere  compensation  for  labor  or  services  does  not  constitute 
a  partnership. 

A  General  Partnership  is  one  formed  for  trade  gene- 
rally, without  limitations,  and  comprehends  whatever  business 
the  partners  may  engage  in. 

A  Special  Partnership  is  one  which  is  confined  by  the 
terms  of  the  agreement  to  some  particular  kind  of  trade  or 
business,  or  some  particular  transaction  or  speculation. 

A  Limited  Partnership  is  one  in  which  the  responsi- 
bility of  one  or  more  of  the  partners  is  limited  to  the  amount 
invested  by  him  or  them  in  the  concern.  In  a  limited  part- 
nership the  special  partner  has  the  advantage  of  investing 
where  the  profits  are  equal  to  the  gains  of  actual  business, 
without  risking  more  than  the  sum  contributed.  The  laws 
relative  to  limited  partnerships  are  of  a  nature  to  require  great 
care  on  the  part  of  any  one  about  to  become  a  special  partner. 
The  statute  law  of  the  State  in  which  such  partnership  is  formed 
must  be  complied  with  literally  and  accurately.  The  advice 
oi'  able  counsel  should  in  all  cases  be  taken  before  entering 
into  such  a  partnership,  in  order  to  avoid  assuming  the  re- 
sponsibilities and  liabilities  of  a  general  partner. 

A  person  who  lends  his  name  as  a  partner,  though  he  con- 
tribute neither  money  nor  time,  nor  receive  any  share  of  the 
profits,  or  who  suffers  his  name  to  continue  in  the  firm  after 


PARTNERSHIP.  319 

he  has  ceased  to  be  an  actual  partner,  is  liable  to  third  per- 
sons as  such. 

Each  partner  has  full  power  to  bind  the  firm  by  all  acts 
and  contracts  within  the  scope  of  the  partnership  business. 

A  partner  cannot  make  the  firm  responsible  for  his  sepa- 
rate debt,  nor  enter  into  engagements  binding  the  firm  which 
are  unconnected  with,  and  foreign  to,  the  partnership. 

Each  partner  may  buy  and  sell  and  make  contracts  for  the 
firm,  and  may  receive  and  pay  money  and  become  a  party  to 
negotiable  paper  in  the  name  of  the  firm. 

In  signing  contracts  relating  to  partnership  business,  part- 
ners should  always  use  the  proper  style  of  the  firm,  not 
merely  their  own  name,  nor  any  other  name  than  the  full 
and  exact  name  of  the  firm. 

In  general,  however,  one  partner  cannot  bind  the  other  by 
an  instrument  under  seal,  unless  the  other  expressly  assents, 
is  present  when  it  is  executed  in  the  joint  name,  or  sub- 
sequently ratifies  it;  though  he  may  execute  a  release  of  a 
debt  due  the  firm.  Nor  can  one  partner  bind  the  firm  by  a 
guarantee  not  in  the  regular  course  of  business,  unless  it  be 
afterwards  adopted  by  the  firm. 

One  partner  may  discharge  himself  from  liability  by  giving 
express  notice  to  any  customer,  or  other  person,  not  to  trust 
one  or  more  of  his  copartners. 

A  partnership  may  be  dissolved  by  the  expiration  of  the 
time  limited  for  its  continuance,  by  the  voluntary  act  of  one 
or  all  of  the  parties,  by  the  death,  insanity,  or  bankruptcy  of 
either,  and  by  judicial  decree.  If  no  precise  period  is  men- 
tioned for  its  continuance,  a  partner  may  withdraw  at  any 
time;  and  even  if  formed  for  a  definite  time,  a  partner  may, 
by  giving  due  notice,  dissolve  the  partnership  as  to  all  future 
capacity  of  the  firm  to  bind  him  by  contract,  subjecting  him- 
self thereby  to  a  claim  for  damages  for  a  breach  of  the  cove- 
nant. 

In  cases  of  a  dissolution  by  death,  it  is  the  surviving  part- 


320  PARTNERSHIP. 

ner  or  partners  alone  to  whom  belong  the  right  and  duty  of 
disposing  of  the  property,  collecting  the  assets,  and  paying 
thereout  the  debts:  the  representatives  of  the  deceased  have 
no  right  to  do  more  than  to  call  upon  the  surviving  partner 
or  partners  to  render  an  account. 

A  creditor  of  a  partner  may  sell  only  such  partner's  indi- 
vidual interest  in  the  surplus  partnership  property,  after  all 
claims  upon  the  firm  are  discharged.  The  purchaser  is  not 
bound  to  become  a  partner,  nor  are  the  others  bound  to  admit 
him. 

The  dissolution  of  a  partnership  by  consent  of  the  parties 
should  be  indorsed  on  the  articles  of  copartnership,  and  im- 
mediate actual  notice  communicated  to  the  parties  who  have 
had  previous  dealings  with  the  firm.  Notice  in  a  newspaper 
is  sufficient  as  to  persons  who  have  had  no  previous  dealings 
with  the  firm;  but  it  is  not  sufficient  for  those  who  have  had, 
as  the  law  requires  express  notice  to  the  debtors. 

Upon  dissolution  all  the  members  are  liable,  individually, 
for  the  contracts  and  debts  of  the  firm  existing  at  that  time. 
In  general,  after  dissolution,  the  power  of  one  partner  to  bind 
the  firm  ceases;  but  either  partner,  without  agreement  as  to 
the  mode  of  liquidation,  may  sell  such  property  as  he  may 
have  in  possession,  and  may  collect  and  receipt  for  debts, 
being  liable  to  be  called  to  account  in  a  general  settlement. 

When  one  partner  assigns  his  interest  in  the  firm,  the  word 
''release"  must  be  used,  as  it  alone,  it  is  said,  can  pass  the 
whole  interest. 

Guarantees  given  to  a  partnership  do  not  continue  valid 
to  a  new  firm. 


AGREEMENT  BETWEEN  PARTNERS. 

All  partnership  agreements  should  be  written,  and  each 
partner  should  hold  a  copy.  Although  not  essential  to  their 
validity  that  the  agreement  should  be  in  writing,  yet  un- 


PARTNERSHIP.  321 

pleasant  feelings  and  difficulties,  as  well  as  serious  pecuniary 
loss,  may  be  prevented  by  having  the  terms  embodied  in  clear 
and  distinct  language. 

Partnership  articles  should  specify  the  names  of  the  seve- 
ral partners,  and  the  name  or  firm  under  which  the  partner- 
ship is  to  be  conducted,  the  kind  of  business  to  be  transacted, 
the  time  of  commencement  and  intended  duration  of  the 
partnership,  the  amount  of  the  capital  contributed  by  each 
partner,  the  manner  in  which  the  gains  and  losses  are  to  be 
shared,  whether  interest  is  to  be  allowed  on  capital  and  at 
what  rate,  the  amount  which  may  be  withdrawn  yearly  by 
each  partner  for  private  use,  and  the  manner  of  disposing  of 
the  partnership  effects  in  the  event  of  a  dissolution.  Other 
stipulations  may  be  inserted  at  the  pleasure  of  the  parties. 


FORM   OP   ARTICLES   OF  COPARTNERSHIP. 

Articles  of  Agreement,  made  and  concluded  this  first  day 
of  January,  in  the  year  a.d.  one  thousand  eight  hundfed  and  sixty- 
seven,  between  Robert  R.  Johnson,  of  the  first  part,  and  Charles 
S.  Burton,  of  the  second  part,  both  of  Pittsburgh,  county  of  Al- 
leghany, State  of  Pennsylvania.  The  said  parties  have  agreed, 
and  by  these  presents  do  agree,  to  associate  themselves  as  co- 
partners for  the  purpose  of  carrying  on  the  General  Hardware 
Business  on  the  following  terms,  to  the  faithful  performance  of 
which  they  mutually  bind  and  engage  themselves,  each  to  the 
other,  his  executors  and  administrators. 

First. — The  name,  style,  and  title  of  such  partnership  shall  be 
R.  R.  Johnson  &  Co.,  and  it  shall  continue  for  three  years  from  the 
date  hereof,  except  in  case  of  the  death  of  either  of  said  partners 
within  the  said  term. 

Second. — That  the  said  Robert  R.  Johnson  contributes,  as  his 
share  of  the  joint  stock,  merchandise  valued  at  Ten  Thousand  Dol- 
lars ($10,000),  a  schedule  of  which  is  contained  in  the  stock-book 
of  the  firm,  and  the  sum  of  Five  Thousand  Dollars  ($5000)  in  cash; 
and  that  the  said  Charles  S.  Burton  contributes  the  sum  of  Three 
Thousand  Dollars  ($3000)  in  cash. 

Third. — All  profits  which  may  accrue  to  the  said  partnership 
V 


322  PARTNERSHIP. 

shall  be  divided,  and  all  losses  happening  to  the  said  firm,  whether 
from  bad  debts,  depreciation  of  goods,  or  any  other  cause  or  acci- 
dent, and  all  expenses  of  the  business,  shall  be  borne  by  the  said 
parties,  in  the  proportion  of  three-fourths  by  the  said  Robert  R. 
Johnson,  and  of  one-fourth  by  the  said  Charles  S.  Burton. 

Fourth. — The  said  R.  R.  Johnson  and  Charles  S.  Burton  shall 
devote  and  give  all  their  time  to  the  business  of  said  firm,  and  use 
their  utmost  endeavors,  to  the  best  of  their  skill  and  ability,  to 
conduct  the  business  for  their  mutual  advantage,  and  will  not, 
within  the  period  above-named,  engage  in  any  other  trade  or  busi- 
ness to  their  private  emolument  or  advantage. 

Fifth. — That  books  of  account  shall  be  kept,  in  which  shall  be 
entered  a  full  and  exact  account  of  all  the  purchases,  sales, 
transactions,  and  accounts  of  said  firm,  and  which  shall  always 
be  open  to  the  inspection  of  both  parties,  and  their  legal  repre- 
sentatives respectively.  An  account  of  stock  shall  be  taken,  and 
an  account  between  the  said  parties  shall  be  settled,  once  in 
every  year,  and  as  much  oftener  as  either  partner  may,  in  writing, 
request.  # 

Sixth. — Neither  party  shall  assume  any  obligation  or  liability, 
verbal  or  written,  either  in  his  own  name  or  the  name  of  the  firm, 
for  the  accommodation  of  any  other  person  or  persons  whatsoever, 
without  the  consent,  in  writing,  of  the  other  party;  nor  shall  either 
party  lend  any  of  the  funds  of  the  copartnership  without  such  con- 
sent of  the  other  partner. 

Seventh. — No  large  purchase  shall  be  made,  nor  any  trans- 
action out  of  the  usual  course  of  the  hardware  business  be  under- 
taken, by  either  of  the  partners,  without  previous  consultation  with 
and  the  approbation  of  the  other  partner. 

Eighth. — The  said  Robert  R.  Johnson  shall  not  withdraw  from 
the  funds  or  j  )int  stock  of  the  firm  more  than  the  sum  of  Eighteen 
Hundred  Dollars  per  annum,  nor  more  than  Three  Hundred  Dol- 
lars in  any  one  month;  and  the  said  Charles  S.  Burton  shall  not 
withdraw  more  than  the  sum  of  Eight  Hundred  Dollars  per  annum, 
nor  more  than  One  Hundred  Dollars  in  any  one  month.  Each  (or 
neither)  party  shall  be  allowed  interest  on  his  share  of  capital  in- 
vested; and  if,  at  the  expiration  of  the  year,  a  balance  of  profits 
be  found  due  to  either  partner,  he  shall  be  at  liberty  to  withdraw 
Baid  balance,  or  to  leave  it  in  the  business,  provided  the  other  part- 
ner consent  thereto. 


\ 


PARTNERSHIP   AGREEMENTS.  323 

Ninth. — At  the  expiration  of  the  aforesaid  term,  or  earlier  disso- 
lution of  partnership,  the  stock  or  its  proceeds,  after  paying  the 
debts  of  the  firm,  shall  be  divided  in  the  proportion  of  five-sixths 
to  the  said  Robert  K.  Johnson,  and  of  one-sixth  to  the  said  Charles 
S.  Burton;  but,  if  the  said  parties  or  their  legal  representatives 
cannot  agree  in  the  division  of  stock  then  on  hand,  it  is  hereby 
agreed  that  the  matter  shall  be  referred  to  the  arbitration  of  II.  L., 
C.  H.,  and  D.  F.  (or  three  competent  disinterested  persons,  selected 
as  may  be  arranged) ;  and  wiiat  they  shall  direct  and  determine 
therein  shall  be  binding  and  conclusive  upon  all  concerned. 

Tenth. — And  it  is  further  agreed,  for  the  faithful  performance  of 
the  aforesaid  articles  of  agreement,  that  either  party,  in  case  of  any 
violation  of  them,  or  either  of  them,  by  the  other,  shall  have  the 
right  to  dissolve  this  copartnership  immediately  upon  his  becoming 
informed  of  such  violation. 

Jn  SSttitttSS  foljertof,  we  have  hereunto  set  our  hands  and  seals 
the  day  and  year  above  written. 

Executed  and  delivered 

in  presence  of  Robert  R.  Johnson.   [Seal.] 

Henry  C.  Rodgers.  Charles  S.  Burton.   [Seal.] 

John  L.  Darrow 

CLAUSES    TO    BE    INSERTED    IN    PARTNERSHIP   AGREEMENTS 
WHEN   DESIRED. 
Not  to  be  bound,  or  indorse  bills,  for  others.— 

And  that  neither  of  the  said  parties  shall,  during  this  copartner- 
ship, enter  into  any  deed,  covenant,  bond,  or  judgment,  or  become 
bound  as  bail  or  surety,  or  give  any  note  or  bill  of  exchange,  or 
accept  any  bill,  with  or  for  any  person  whatsoever,  without  the  con- 
sent of  the  other  first  had  and  obtained. 

A  majority  to  control. — That  in  all  matters  respecting 
the  transactions  of  the  partnership  and  the  management  of  the 
business,  the  expressed  opinion  of  the  majority  of  the  parties  to 
this  agreement  shall  govern  and  be  binding  on  all  of  said  parties ; 
and  in  cases  of  difficulty  they  shall  have  power  to  wind  up  or  sell 
the  concern. 

Not  to  trust  any  one  against  the  wish  of  a 
partner. — And  that  no  merchandise  belonging  to  the  firm  shall 
oe  sold  to  any  person  or  persons  after  notice  from  either  of  said 
partners  that  such  persons  are  not  to  be  credited  or  trusted. 


324  PARTNERSHIP    AGREEMENTS. 

Neither  partner  to  assign  his  interest. — And  it  is 

agreed  between  said  parties  that  neither  of  them  shall,  without  the 
consent  of  the  others,  previously  obtained  in  writing,  sell  or  assign 
his  share  or  interest  in  the  joint  concern,  to  any  person  or  persons 
whatsoever. 

AGREEMENT   TO   CONTINUE   PARTNERSHIP. 

By  Indorsement  on  the  Original  Articles. 
SS&ljereag  the  within-mentioned  partnership  has  expired  by  the 
limitations  contained  therein  (or  will  expire  on,  &c),  it  is  hereby 
agreed  that  the  same  shall  continue  upon  the  same  terms,  with  all 
the  provisions  and  restrictions  herein  contained,  for  the  further 
term  of  five  years,  from  the  day  of 

$u  WatlUSS  foljereof,  we  have  hereunto,  &c. 

Witnesses.  Arthur  B.  Clark.  [Seal.] 

Geo.  C.  Hartley.  Matthew  H.  Ralston.  [Seal.] 

M.  H.  Martin. 

AGREEMENT   TO   DISSOLVE   A   PARTNERSHIP. 

By  Indorsement. 
We,  the  undersigned,  do  mutually  agree  that  the  within-men- 
tioned partnership  be  and  the  same  is  hereby  dissolved;    except 
for  the  purpose  of  final  liquidation  and  settlement  of  the  business 
thereof,  and  upon  such  settlement  wholly  to  cease  and  determine. 

W&ittttSS  our  hands  and  seals,  this  day  of,  &c. 

Signed,  sealed,  and  delivered 

ia  presence  of  Chauncey  S.  Douglass.   [Seal.] 

Harvey  C.  Chester.  Reuben  H.  Howard.        [Seal.] 

Porter  L.  Fields. 

PUBLIC   NOTICE   OF   FORMATION    OF   PARTNERSHIP. 
Notice  of  Copartnership. — The   undersigned   have   this 
day  formed  a  copartnership  under  the  name  and  style  of  Gregory, 
Anderson  &  Co.,  for  the  purpose  of  carrying  on  the  wholesale  dry- 
goods  business,  at  689  Chestnut  Street,  Philadelphia. 

George  W.  Gregory. 
Andrew  L.  Anderson. 
Phila.,  Jan.  1, 1868.  Samuel  T.  Holden. 


PARTNERSHIP   NOTICES.  825 

PUBLIC  NOTICE  OF  DISSOLUTION  OP  PARTNERSHIP. 
Notice  of  Dissolution.  —  The  copartnership  heretofore 
existing  between  George  W.  Gregory,  Andrew  L.  Anderson,  and 
Samuel  T.  Holden,  under  the  firm  of  Gregory,  Anderson  &  Co.,  is 
this  day  dissolved  by  mutual  consent  (or,  has  this  day  expired  by 
limitation,  or  as  the  case  may  be). 

George  W.  Gregory  is  authorized  to  settle  all  claims  against,  or 
to  receive  all  amounts  due,  the  above-named  firm. 
(Or,  Either  partner  will  sign  in  liquidation.) 

(Or,  The  business  will  be  continued  by  George  W.  Gregory  and 
Samuel  T.  Holden,  under  the  name  of  Gregory  &  Holden,  who  are 
authorized  to  settle  the  accounts  of  the  late  firm.) 

George  W.  Gregory. 
Andrew  L.  Anderson. 

Feb.  1, 1S68.  SAMUEL  T.  HOLDEN. 

PUBLIC    NOTICE    OF    CHANGE    OF   PARTNERSHIP. 
Notice. — Thomas  Y.  Benton  is  admitted  this  day  as  a  member 
of  our  firm.     The  business  will  hereafter  be  conducted  under  the 
name  of  Porter,  Hudson  &  Co. 

Benson  J.  Porter. 
July  l,  1867.  Jacob  L.  Hudson. 

ANOTHER. — ONE  PARTNER  RETIRING. 

Notice. — Mr.  Lewis  N.  Dixon  retires  from  our  firm  this  day. 
The  business  will  be  conducted  hereafter  under  the  name  of  Ru- 
dolph &  Hunter.  Lewis  N.  Dixon. 

Jared  L.  Rudolph. 

Jan.  1, 1868.  PHILIP  T.  HUNTER. 

SHORT   FORM   OF   ASSIGNMENT   OF   BOND. 
For  value  received,  I  do  hereby  assign  and  set  over  the  withm 
obligation,  and  all  moneys  due  thereon,  unto  James  M.  Walters,  his 
executors,  administrators,  or  assigns,  without  recourse. 

SStitnxss  my  hand  and  seal,  this  twentieth  day  of  January,  1868. 
Signed,  sealed,  and  delivered 
in  presence  of  John  L.  Rayburn. 

Milton  N.  Somers. 
Henry  K.  Park. 

28 


326  LANDLORD    AND    TENANT. 

LANDLORD   AND   TENANT. 

A  landlord  is  one  who  owns  real  estate  which  for  a  stated 
period,  and  at  a  stipulated  rental,  is  in  possession  of  another, 
called  a  tenant.  The  contract  between  the  two  parties  is 
calhd  a  lease.  It  is  advisable,  in  all  cases,  that  leases  be  in 
writing,  and  that  each  party  have  a  copy.  The  terms  of  a 
lease  should  be  specified  clearly;  verbal  promises  are  of  no 
effect  to  add  to  or  vary  a  written  lease :  the  lease  must  speak 
for  itself. 

A  lease  from  year  to  year  is  where  no  definite  time  is  fixed 
for  its  termination  j  a  lease  for  years  is  every  estate  which  is 
to  expire  at  a  certain  specified  period. 

A  tenant  for  years  may  underlet,  unless  forbidden  by  the  lease. 

Where  a  lease  for  one  or  more  years  expires,  and  by  im- 
plied consent  the  tenant  remains  in  possession,  he  is  not  a 
tenant  at  will,  but  is  considered  a  tenant  from  year  to  year. 

If  no  time  is  stated  for  the  payment  of  the  rent  in  a  lease 
for  a  year,  the  rent  is  not  due  until  the  end  of  the  year,  un- 
less the  law  of  the  State  is  different.  In  New  York,  in  the 
absence  of  special  agreement,  the  rent  is  due  on  the  usual 
quarter  days. 

To  terminate  a  tenancy  from  year  to  year,  each  party  is 
bound  to  give  notice  within  the  time  required  by  the  statute 
law  of  the  particular  State.  The  notice  should  be  in  writing, 
directed  to  the  tenant;  if  he  cannot  be  found,  leaving  the 
notice  at  the  dwelling-house  will  be  sufficient.  No  notice  is 
necessary  to  be  given  to  the  under-tenants.  It  is  advisable 
for  the  landlord  to  preserve  a  duplicate  of  the  original  notice, 
with  the  time  and  manner  of  service  indorsed  on  it,  and 
signed  by  the  witness  or  witnesses. 

A  tenant  from  year  to  year  is  entitled  to  six  months'  notice 
in  New  York,  Vermont,  Kentucky,  and  Tennessee ;  to  three 
months'  notice  in  Pennsylvania  and  some  of  the  other  States  j 
and  to  two  months  in  Massachusetts. 


FORM    OF    LEASE.  327 

A  tenant  is  not  responsible  for  taxes,  except  when  so  speci- 
fied in  the  lease ;  and,  when  paid  by  him,  he  can  deduct  the 
amount  from  the  rental  value. 

A  landlord  is  under  no  legal  obligations  to  repair,  unless 
he  has  expressly  covenanted  to  do  so;  nor  a  tenant,  in  the 
absence  of  a  covenant,  beyond  injuries  occasioned  by  his 
voluntary  negligence. 

FORM    OP   LEASE. 

fthfe  gigrccnttllt  SSCitlUSSet^,  That  Henry  T.  Morton  doth  hereby 
let  unto  Robert  H.  Walters  that  certain  house  and  lot  situated 
No.  1801  Green  Street,  fourteenth  ward,  city  of  Philadelphia,  for 
the  term  of  one  year  from  the  fifth  day  of  June,  1866,  at  the  rent 
of  six  hundred  dollars  per  year,  to  be  paid  in  quarterly  portions  in 
advance ;  and  the  said  Robert  H.  Walters  doth  hereby,  for  his  heirs, 
executors,  and  administrators,  covenant  and  promise  to  pay  to  the 
said  Henry  T.  Morton,  or  his  assigns,  the  said  rent  in  the  propor- 
tions aforesaid ;  and  the  said  Robert  H.  Walters,  his  executors  and 
administrators,  shall  and  will  not,  at  any  time  during  the  said  term, 
let  or  demise,  or  in  any  manner  dispose  of,  the  hereby  demised  pre- 
mises, or  any  part  thereof,  for  all  or  any  part  of  the  term  hereby 
granted,  to  any  person  or  persons  whatever,  nor  occupy  or  use  the 
same  in  any  other  manner  than  as  a  private  dwelling,  without  the 
consent  and  approbation,  in  writing,  of  the  said  Henry  T.  Morton  or 
his  assigns,  first  had  for  that  purpose ;  and  at  the  expiration  of  the 
said  term  yield  up  and  surrender  the  possession  of  the  said  pre- 
mises, with  the  appurtenances,  unto  the  said  Henry  T.  Morton  or 
his  assigns,  in  the  same  good  order  and  condition  as  the  same  now 
are,  reasonable  wear  and  tear  thereof,  and  accidents  happening  by 
fire  or  other  casualties,  excepted. 

And  the  said  Robert  H.  Walters,  his  executors  and  adminis- 
trators, hereby  agree  that  all  the  personal  property  on  the  premises 
shall  be  liable  to  distress ;  and  also  all  personal  property,  if  re- 
moved therefrom,  shall,  for  thirty  days  after  such  removal,  be  liable 
to  distress,  and  may  be  distrained  and  sold  for  rent  in  arrear ;  the 
said  Robert  H.  Walters,  his  executors  and  administrators,  hereby 
waiving  all  right  to  the  benefit  of  any  laws  now  made,  or  hereafter 
to  be  made,  exempting  personal  property  from  levy  and  sale  for 
arrears  of  rent. 


328  NOTICES   TO   QUIT. 

It  is  hereby  further  agreed,  that  if  the  above-named  Robert  H, 
Walters  should  continue  on  the  above-described  premises  after  the 
termination  of  the  above  contract,  then  this  contract  is  to  continue 
in  full  force  for  another  year,  and  so  on,  from  year  to  year,  until 
legal  notice  is  given  for  a  removal. 

|n  MttUSS  foljmof,  the  said  Henry  T.  Morton  and  Robert  H. 
Walters  have  hereunto  set  their  hands  and  seals,  the  fifth  day  of 
June,  one  thousand  eight  hundred  and  sixty-six. 

Sealed  and  delivered  in 

the  presence  of  Robert  H.  Walters.   [Seal.] 

James  T.  Rodgers.  Henry  T.  Morton.       [Seal.] 


SECURITY   FOR   RENT. 
I,  George  L.  Mason,  do  hereby  agree  to  be  responsible  to  Henry 
T.  Morton,  or  his  assigns,  for  the  true  and  faithful  performance 
of  the  above-named  contract  on  the  part  of  Robert  H.  Walters. 

$Jt  SSRitntSS  foljertof,  I  have  hereunto  set  my  hand  and  seal,  the 
fifth  day  of  June,  one  thousand  eight  hundred  and  sixty-six. 
Sealed  and  delivered  in 

the  presence  of  George  L.  Mason.     [Seal.] 

James  T.  Rodgers. 


NOTICE   TO    QUIT   BY   THE    LANDLORD. 

Sir: — Please  take  notice  that  you  are  hereby  required  to  sur- 
render and  deliver  up  possession  of  the  house  and  lot  known  as 
No.  7  Day  Street  (or  as  the  case  may  be),  which  you  now  hold  of 
me,  and  to  remove  therefrom  on  the  first  day  of  next,  or 

at  the  expiration  of  the  current  year  of  your  tenancy. 

Dated  this  day  of  ,  1867. 

To  Mr.  L.  N.  Selser.  J.  G.  Bond, 

Landlord. 

NOTICE   TO   QUIT   BY   THE    TENANT. 

Please  take  notice  that  on  the  1st  day  of  May  next  I  shall  quit 
possession  and  remove  from  the  premises  I  now  occupy,  known  as 
house  and  lot  No.  7  Day  Street,  in  the  city  of  New  York. 

Dated  this  first  day  of  Jan.  1867.  Yours,  &c, 

To  Mr  J.  G.  Bond.  L.  N.  Selser. 


MERCANTILE    CORRESPONDENCE.  329 


MERCANTILE   CORRESPONDENCE. 

In  all  composition,  three  things  require  attention : — the 
thoughts,  their  arrangement,  and  the  language  employed. 

On  business  subjects,  as  on  other  matters,  he  writes  best 
who  writes  from  a  full  mind.  No  one  is  expected  to  write 
well  on  any  subject  who  has  but  little  acquaintance  with  it. 
This  is  the  reason  why  otherwise  well-educated  persons  fre- 
quently fail  in  their  efforts  to  write  a  good  mercantile  letter  : 
they  are  ignorant  not  only  of  the  technicalities  of  business 
phraseology,  but  of  business  itself. 

The  qualifications  acquired  at  school  are  a  good  founda- 
tion; but  they  will  not  dispense  with  a  knowledge  of  business 
dealings  and  of  the  peculiar  styles  of  expression  employed  in 
commercial  correspondence.  Familiarity  with  the  techni- 
calities of  the  counting-house  is  gained  only  by  constant 
practice ;  and  facility  and  skill  are  not  obtained  until  these 
have  been  mastered.  To  a  business  man,  a  terse  mercantile 
phrase  is  as  full  of  meaning  as  a  formula  is  to  a  mathematician, 
and  a  few  words  are  often  all  that  is  necessary  to  impart  what 
would  require  from  others  many  circuitous  sentences. 

A  well-written  mercantile  letter  furnishes  not  only  a  model 
for  acquiring  form  and  phraseology,  but  is  also  a  record  and 
an  explanation  of  the  business  transacted.  Business  letters 
often  partake  of  the  nature  of  contracts,  when  mistakes, 
omissions,  or  uncertainty  would  involve  serious  loss.  They 
should  be  clear  and  concise ',  there  should  be  nothing  ambi- 
guous, nothing  omitted,  nothing  superfluous.  Men  in  busi- 
ness are  too  much  occupied  to  waste  time  either  in  reading  or 
writing  long  letters  filled  with  what  is  irrelevant  or  useless. 

Good  writing  materials  should  be  selected.  It  is  poor  eco- 
nomy to  use  inferior  articles ;  and  the  who^  appearance  of  the 
letter  is  affected  by  the  quality  of  the  ink  and  paper  used. 

The  date  of  a  letter  should  be  stated  correctly  and  dis- 
28* 


330        MERCANTILE  CORRESPONDENCE. 

tinctly,  as  it  is  frequently  a  matter  of  considerable  import- 
ance. In  England  the  day  is  placed  before  the  month;  thus, 
11th  August,  instead  of  August  11th,  as  in  this  country.  In 
writing  from  a  city,  it  is  well  to  mention  the  street  and 
number. 

The  form  of  complimentary  address  to  be  adopted  depends 
upon  the  degree  of  intimacy  and  the  relative  position  of  the 
parties.  In  writing  to  a  gentleman  to  whom  you  are  an  en- 
tire stranger,  he  is  addressed  as  "  Sir."  "  Dear  Sir"  is  used 
on  nearly  all  occasions,  frequently  to  a  stranger,  unless  a  cer- 
tain formality  is  required.  "  My  dear  Sir"  implies  a  very 
friendly  relationship.  A  married  lady  is  addressed  as 
"  Madam"  or  -"  Dear  Madam,"  and  an  unmarried  lady  as 
"Miss"  or  as  "Dear  Miss,"  usually  with  her  last  name 
affixed.  "  Reverend  Sir"  is  used  in  addressing  a  clergyman  ; 
"  Esteemed  Sir"  is  usual  when  some  degree  of  formality  is  re- 
quired. Judges  and  Members  of  Congress  should  be  addressed 
by  the  title  of  "  Honorable."  In  writing  to  a  firm,  company, 
or  any  number  of  persons  associated  in  a  body,  the  address 
is  "  Gentlemen." 

The  place  where  the  person  resides  who  is  written  to,  is 
given,  to  provide  against  any  accident  or  attempt  at  fraud 
which  would  destroy  the  superscription  and  thus  prevent  it 
from  being  used  as  evidence. 

In  answering  a  letter,  after  acknowledging  its  receipt,  each 
point  requiring  consideration  should  be  taken  up  in  order 
and  discussed  in  a  separate  paragraph,  before  any  new  sub- 
ject is  mentioned. 

Orders  should  specify  exactly  what  goods  are  desired,  with 
full  directions  concerning  them.  If  a  communication  on  other 
subjects  is  also  sent,  the  order  should  be  on  a  separate  part 
of  the  letter,  or,  better  still,  on  a  separate  paper. 

In  letters  containing  remittances  or  enclosures,  the  amount, 
or  papers  enclosed,  should  be  distinctly  mentioned,  to  guard 


MERCANTILE  CORRESPONDENCE.        331 

against  loss,  and  that  the  letter  may  be  used  as  evidence,  if 
necessary.  When  drafts  are  drawn,  it  is  customary  to  inform 
the  person  on  whom  they  are  drawn,  that  he  may  be  pre- 
pared to  meet  them  at  the  proper  time. 

Some  firms  have  a  printed  form  of  receipt,  and  also  a 
printed  form  of  letter  for  acknowledging  remittances  re- 
ceived, which  they  use  in  order  to  save  the  time  and  labor 
required  in  an  extensive  correspondence. 

Instructions  to  agents  and  commission-merchants  should 
be  in  the  plainest  terms,  with  full  directions  how  to  act  in 
any  contingency,  that  there  may  be  no  misunderstanding  or 
dispute.  Agents  should  keep  their  principals  well  advised 
in  reference  to  the  condition  and  progress. of  the  business 
with  which  they  are  intrusted. 

A  bill  or  statement  of  account  is  usually  sent  at  stated 
periods,  and  should  of  itself  call  attention  to  its  settlement. 
Sometimes  the  words  "  Please  remit"  are  written  on  one  end 
of  the  bill,  for  that  purpose.  Many  houses,  however,  are  in 
the  habit  of  sending  out  statements  which  are  merely  for  the 
purpose  of  comparing  accounts. 

When  it  becomes  necessary  to  request  payment,  it  should 
be  done  in  gentlemanly  terms,  even  if  there  has  been  con- 
siderable delay.  A  man  loses  more  than  he  gains  when  he 
indulges  in  rash  or  insulting  language.  A  bitter  word,  when 
spoken,  may  be  forgotten  ;  but,  when  once  written,  it  becomes 
abiding  evidence  of  the  irascibility,  if  not  insult,  of  the  writer. 
A  decided  yet  respectful  manner  is  productive  of  the  best 
effects.  An  air  of  civility  should  pervade  every  letter,  yet 
there  should  be  nothing  servile  or  affected. 

In  writing  to  others  on  business  pertaining  solely  to  one's 
own  affairs  or  for  his  own  benefit,  a  stamp  should  be  enclosed, 
with  which  to  prepay  the  postage.  To  persons  who  have  a  large 
correspondence,  the  postage  is  an  item  of  some  importance. ' 

Letters  of  introduction  and  recommendation  should  not  be 


332        MERCANTILE  CORRESPONDENCE. 

sealed,  that  the  persons  whom  they  concern  may  have  an 
opportunity  of  knowing  their  contents. 

In  applications  for  situations  in  business  houses,  the  hand- 
writing has  much  to  do  with  success.  It  is  almost  useless 
for  a  poor  writer  to  expect  employment  in  a  counting-house. 
Merchants  do  not  wish  either  the  discredit  or  the  inconve- 
nience of  bad  writing. 

When  testimonials  are  required,  and  it  is  desired  to  pre- 
serve the  original,  a  copy  should  be  enclosed,  and  marked 
"  copy"  at  the  top  of  the  page. 

All  business  letters  requiring  an  answer  should  receive  im- 
mediate attention.  Negligence  in  this  respect  is  a  species 
of  incivility.  Every  letter,  as  soon  as  read  and  its  contents 
attended  to,  should  be  neatly  folded,  indorsed  with  the  name 
of  the  writer  and  the  date  of  the  receipt  and  answer,  and 
then  tiled. 


q         *b   To 


It  is  advisable  that  copies  of  all  letters,  and  also  all  papers 
of  importance,  be  retained  for  future  reference.  A  facsimile 
copy  of  a  letter  is  admitted  as  evidence  after  notice  to  the 
other  party  in  the  cause  to  produce  the  original. 

The  mere  mechanical  folding  of  a  letter  is  not  unworthy 
of  attention.  A  letter  carelessly  written,  clumsily  folded,  or 
ill  directed,  denotes  either  ignorance  of  what  is  proper,  or  a 
want  of  respect  to  the  person  addressed. 

The  superscription  should  be  distinctly  written.  From 
neglect  of  this  precaution,  thousands  of  letters  are  sent  every 
month  to  the  dead-letter  office.  During  the  year  ending  June 
30th,  1867,  there  were  received  at  the  Post-Office  Department 


MERCANTILE  CORRESPONDENCE.        333 

at  Washington  4,306,508  letters  as  unpaid  or  misdirected 
On  many  the  name  of  the  town  as  well  as  of  the  State  was 
omitted  from  the  direction ;  on  some  the  superscription  con- 
sisted simply  of  the  name  of  the  town  and  State,  that  of  the 
person  being  omitted,  as  if  totally  unimportant;  and  so  care- 
less had  been  the  writers  of  others  that  they  had  not  even 
signed  their  names. 

When  sent  to  a  large  city,  the  letter  should  be  directed  to 
the  street  and  number,  as  well  as  to  the  post-office  and  State. 
The  postage  stamp  should  be  placed  upon  the  upper  right- 
hand  corner.  When  it  is  important  to  know  whether  the 
letter  has  been  received  or  not  within  a  certain  time,  a  re- 
quest for  its  return  to  the  writer,  if  not  called  for,  should  be 
placed  upon  the  left-hand  end  of  the  envelope. 


2 

e  . 

53 


S  a 
\\ 

a   v 
-I 


Limited  space  prevents  our  offering  more  than  a  few  forms 
of  letters  which  relate  to  transactions  of  the  most  frequent 
occurrence.  Nearly  all  of  those  here  given  have  been  taken 
from  the  letter-books  of  extensive  houses,  and  are  presented 
not  as  models  of  superior  excellence,  but  for  the  purpose  of 
aiding  those  who  wish  to  become  familiar  with  the  language 
and  formula  of  business  correspondence. 


334  MERCANTILE    LETTERS. 

MERCANTILE   LETTERS. 
1.  Offering  Goods. 

SVL  pu,  js&f  /s,  /sf/. 

^MeJdU.    tX  -L.   ^Coiton  <r    wo., 

foeUmfiie* 


We    /arte    me    uoeitu    o/  enc/auna    a    few 

tatn/i&j  o/  SS/acft    tJa/6eSad,  jietf  iecewea  /tel  tL/ieavnet 

tJJUaaaia.  <j/ieu  aie  in  4a#e4nd  o/  a&cttj  /^  uaiad, 

/a//  ^^  wcAed  <w€€te,   at  $3.  /£  /tei  ■uaia.         <Jnoa/a 

uoa  neea    <mu  o/  metn,   <we  d/iau    4#  AaAAu  to    iecetve 

oiaei. 

uoaU,    4ed/2€c//a//u , 


2.  Declining  Offer  to  Buy. 

Messrs.  Gray,  Smith  &  Co.  Philadelphia,  Aug.  3, 1866. 

Gentlemen: — Yours  of  the  25th  ult.  is  received.  We  are  under  the 
necessity  of  declining  to  fill  your  order  upon  the  terms  proposed  by 
you.  On  receipt  of  fifteen  hundred  dollars,  we  will  ship  the  goods, 
with  the  understanding  that  the  balance  will  be  paid  within  sixty 
days  from  the  date  of  shipment.  Hoping  that  these  terms  will  be 
satisfactory,  we  remain 

Yours,  very  respectfully, 

Henry  L.  Park  &  Son. 


MERCANTILE    LETTERS.  335 

3.  Declining  to  Purchase. 

Messes.  L.  H.  Alward  &  Co.,  Miltvaukie,  November  1, 1866. 

.    Philadelphia. 
Gentlemen: — We  are  in  receipt  of  your  favor  of  the  30th  ult.,  and 
have  likewise  received  the  samples  of  Poplins,  but,  having  as  many 
goods  of  this  description  as  we  require  for  our  present  sales,  we 
must  decline  handing  you  an  order  from  samples  forwarded. 
Respectfully,  yours, 

Chandler  &  Co. 

4.  Order  for  Goods. 

Memphis,  Tenn.,  August  10, 1866. 
Messrs.  Marshall  &  Howland, 

New  York. 

Gentlemen: — You  will  please  ship  us  at  your  earliest  convenience 

Three  (3)  Half-chests  Imperial  Tea  (Andreas,  $257),  same  as  in 

last  bill;  also,  Two  (2)  Half-chests  of  best  Imperial  (Queen  of  the 

North,  #9,  or  something  better).    Ship  by  Great  Western  Dispatch, 

and  mark  goods  as  follows  : 

J.  M.  Orwio  &  Bro.,  Memphis,  Tenn., 

Care  Gould  &  Linton,  Cincinnati,  Ohio. 

Please  write  across  Bill  of  Lading,  "  Insured  in  consignees'  open 

policy  in  the  Globe  Insurance  Co.  of  Cincinnati,"  and  send  Gould  & 

Linton  the  amount  of  Invoice,  that  they  may  enter  on  our  policy 

book.     Your  early  shipment  will  much  oblige 

Yours,  very  truly, 

J.  M.  Orwig  &  Bro. 

5.  Enclosing  Invoice  and  Bill  op  Lading. 

Por  "Wyoming."  Philadelphia,  March  17, 1867. 

Messrs.  L.  M.  Seaton  &  Co., 

New  Orleans. 
Dear  Sirs: — We  confirm  our  last  letter  of  12th  inst.,  and  hand 
you  herewith  enclosed  B.  of  L.  and  Invoice  of  Cases  E,  H,  #632 
and  633,  ordered  by  your  Mr.  Carlton,  which  we  have  shipped  this 
day  on  board  Steamer  Wyoming.  Amt.,  $1250.T5Tr°ff ;  due  June  17th. 
Should  you  need  any  of  our  qualities  of  Cassimeres,  we  shall  be 
pleased  to  fill  your  orders  on  the  best  terms  possible. 

Yours,  truly, 

Wells,  Fisk  &  Co. 


336  MERCANTILE   LETTERS. 

6.  Concerning  Credit  at  a  Banker's. 

"  Edinburgh."  Liverpool,  12  Feb.,  1868. 

Messrs.  John  Simpson  &  Co., 

Philadelphia. 
Gentlemen: — We  have  your  favor  of  29th  ult.,  and,  as  desired, 
have  confirmed  a  credit  %v  £500  to  Messrs.  F.  &  B.  Brown  &  Co. 

Your  instructions  respecting  shipment  and  insurance  have  our 
attention.  We  are,  gentlemen, 

Your  obedient  servants, 

Green,  Richards  &  Co. 


7.  Advice  concerning  Shipment. 

Messrs.  John  Simpson  &  Co.,  Liverpool,  17  March,  1868. 

Philadelphia. 
Dear  Sirs: — We  are  advised  that  the  under-mentioned  goods  are 
coming  to  us  for  shipment  on  your  account,  and  we  purpose  for- 
warding them  by  the  conveyance  noted  below.     Should  they  not, 
arrive  here  in  time  for  shipment,  a  further  advice  will  be  sent  you. 
We  state  the  value  as  given  for  entry,  and  remain 

Yours,  respectfully, 

Green,  Richards  &  Co. 
Per  S.S.  "Delaware,"  for  Philadelphia,  sails  22d  inst. 
J.  S.  C,  1/3.     3  cases,  £224,  from  F.  &  B.  Brown  &  Co. 


8.  Enclosing  Invoice. 

Per  the  "  City  of  Paris."  Manchester,  20  March,  /66. 

Messrs.  John  Simpson  &  Co., 

Philadelphia. 
Dear  Sirs: — We  have  the  pleasure  to    hand  you  herewith  invoice 
of  the  packages  noted  below,  which  we    trust  will  result  in  all  re- 
spects to  your  satisfaction. 

To  cover  present  shipment,  we  apply  for  funds  to  Messrs.  Green, 
Richards  &  Co.,  as  usual. 

Great  activity  prevails  in  our  market,  and  prices  generally  are 
%dvancing.  We  are,  dear  sirs, 

Your  obedient  servants, 

F.  &  B.  Brown  &  Co. 
£220.  18.  0.  net  cash,  Mar.  20/66. 
J.  S.  C,  1/3,  per  steamer  "Delaware." 


MERCANTILE    LETTERS.  337 

9.  Advising  Receipt  of  Invoice. 

Ma.  James  L.  King,  Boston.  St.  Louis,  April  5, 1867. 

Dear  Sir: 

Your  favor  of  March  29th,  with  B.  of  L. 
and  Invoice,  was  received  in  due  time.  The  goods  are  all  that  we 
desired;  and  for  your  promptness  and  care  in  filling  our  order, 
accept  our  thanks. 

Enclosed  find  in  payment  Holmes  &  Bros.'  Draft  on  First  National 
Bank  of  Boston,  at  sight,  for  $1875.T5^°ff.  Please  acknowledge 
receipt  per  return  mail,  and  oblige 

Yours,  respectfully, 

Thos.  L.  Smith  &  Co. 

10.  Consigning  Goods  to  be  sold  on  Commission. 

Messrs.  Samuel  G.  Porter  &  Co.,  Cincinnati,  May  11, 1867. 

New  York. 
Dear  Sirs: — Your  favor  of  7th  inst.  is  at  hand.  We  enclose  you 
Invoice  and  Bill  of  Lading  of  100  bbls.  Mess  Pork  and  50  firkins  of 
Butter,  shipped  this  day  per  Merchants'  Line,  to  be  sold  for  our  ac- 
count, as  per  agreement.  We  request  you  not  to  sell  for  less  than 
Invoice  price,  and  if  you  succeed  in  disposing  of  this  lot  satisfac- 
torily, you  may  be  almost  sure  of  receiving  further  consignments 
from  us.  We  have  drawn  on  you  at  ten  days'  sight,  through  Phoenix 
Bank,  for  One  Thousand  Dollars.  Awaiting  your  advices,  and 
hoping  soon  to  hear  from  you,  we  remain, 

Very  truly,  yours, 

M.  Johnson  &  Co. 


11.  Enclosing  Account  Sales. 
Messrs.  M.  Johnson  &  Co.,  New  York,  June  10, 1867. 

Cincinnati. 
Dear  Sirs : — Enclosed  we  send  you  Account  Sales  of  Pork  and 
Butter  shipped  us  on  May  11th.     The  Net  Proceeds,  $1750.62,  due 
per  average  July  2d,  we  have  placed  to  the  credit  of  your  account; 
the  result,  we  hope,  will  be  satisfactory. 

We  shall  be  pleased  to  receive  further  consignments  from  you,  and 
will  endeavor  to  dispose  of  them  on  the  most  advantageous  terms. 
Thanking  you  for  past  favors,  we  remain, 

Truly,  yours, 
Samuel  G.  Porter  &  Co. 
W  29 


338  MERCANTILE    LETTERS. 

12.  Advising  of  Shipment. 

45  Calliope  Sthext, 
Messrs.  H.  R.  Stanley  &  Co.,  New  Orleans,  Nov  4,1867. 

Cincinnati. 
We  herewith  enclose  Bill  of  Lading  and  Invoice  of  Molasses  and 
Sugars,  amounting  to  $4233.75,  which  we  have  this  day  shipped  per 
steamboat  Star  of  the  West,  as  per  your  order  of  27th  ultimo. 

We  have  taken  considerable  pains  to  select  such  lots  as  we  thought 
would  suit  you,  and  hope  we  have  succeeded.    Sugars  are  advancing. 
We  send  with  this  a  list  of  our  present  quotations.     Awaiting  your 
further  orders,  and  grateful  for  those  received,  we  remain, 
Very  respectfully, 

Your  obedient  servants, 

W.  Morrison  &  Co. 


13.  Advising  op  Consignment. 

Messrs.  T.  H.  Hawkins  &  Co.,  Havana,  June  4, 1867. 

Boston. 
Gentlemen: — We  have  this  day  shipped  you,  per  steamer  Juniata, 
Farington,  master,  1200  bbls.  P.  R.  Sugar,  T.  H.  H.,  and  228  bbls. 
Cuba  S.  W.  Sugar,  L.  B.  C,  to  be  sold  as  per  our  agreement.    Please 
find  Invoice  and  Bill  of  Lading  enclosed. 

From  the  present  state  of  the  market,  we  are  induced  to  hope  that 
this  lot  will  meet  with  ready  sale  at  good  prices.     Should  you  suc- 
ceed in  disposing  of  this  Invoice  satisfactorily,  we  expect  to  send 
you  another  early  in  next  month. 
Awaiting  your  advice,  we  remain 

Yours,  respectfully, 

Linnard,  Bates  &  Co., 
per  S.  T.  Gerter. 

14.  Enclosing  Note  for  Discount. 

Ghas.  R.  Coleman,  Esq.,  Cashier.  Baltimore,  Peb.  11, 1868. 

Dear  Sir: — We  offer  for  discount,  enclosed,  J.  Brown's  note,  Jan. 
12th,  at  ninety  days,  for  $4250.75.  By  discounting  the  same  you 
will  much  oblige  Yours,  respectfully, 

Thos.  H.  Whitman  &  Co. 


MERCANTILE   LETTERS.  339 

15.  Enclosing  Account  Current. 

Me.  Henry  T.  Morris,  Sandtiskt,  0.,  Jan.  1, 1887. 

Nebraska  City. 

Dear  Sir: 

We  respectfully  call  your  attention  to  the 
enclosed  Account  Current,  with  interest  calculated  to   this  date, 
showing  a  balance  in  our  favor  of  $3275.T5^.     If  you  find  correct, 
please  remit  us  a  Draft  at  sight  for  the  amount,  and  oblige 
Yours,  respectfully, 

D.    RUNDEL    &    CO. 


16.  Enclosing  Remittance. 

Messrs.  J.  T.  Anthony  &  Co.,  Savannah,  January  21, 1867. 

Manchester,  Eng. 

Gentlemen: 

Your  favor  of  2d  inst.,  covering 
statement  of  account,  is  at  hand,  and  upon  examination  we  find  it 
correct.  Enclosed  please  find  Richardson  &  Cowden's  1st  and  2d 
of  Exchange  on  Brown,  Shipley  &  Co.  for  Two  Hundred  and  Sixty 
Pounds  7/5,  in  settlement  of  account  to  1st  inst. 
Please  acknowledge  receipt,  and  oblige 

Yours,  very  truly, 

B.  F.  Moore  &  Co. 


per  D.  B.  Martin. 


17.  Another. 


Messrs.  A.  L.  Watson  &  Co.,  Trenton,  Apni  10, 1857. 

Philadelphia. 
Dear  Sirs  : 

Enclosed  find  my  Check  on  First  National  Bank  of  this 
city  for  Twenty-Two  Hundred  and  Fifty  Dollars,  in  payment  of 
Bills  of 

July  21    ....     1262.10 

"    25        .         .         .  872.00 

"    28   .        .        .        .       115.90 

$2250.00 

Please  acknowledge  receipt,  and  oblige 

Yours,  respectfully, 

James  Andersok. 


340  mercantile  letters. 

18.  Acknowledging  Remittance. 

Buffalo,  Jan.  12, 1867. 
Received  from  Messrs.  George  H.  Jackson  &  Co.,  Five  Hundred 
and  Fifty  ^^  Dollars  on  account. 
$550.^.  H.  D.  Clinton  &  Co. 

Messrs.  George  H.  Jackson  &  Co.,  Buffalo,  Jan.  12, 1867. 

Utica,  N.  Y. 
Gentlemen: — Above  please  find  receipt  for  remittance  contained  in 
yours  of  10th  inst.,  for  which  we  are  obliged.  We  find  in  your  state- 
ment a  variation  in  two  items,  those  of  December  6th  and  19th.  Can 
you  favor  us  with  an  explanation,  as  we  have  no  credits  reducing 
the  amount  of  $35  to  $25.T5C%  or  $675.T3^  to  $654.^? 
Waiting  your  reply,  we  remain, 

Respectfully,  yours, 

H.  D.  Clinton  &  Co. 


19.  Another. 

Messrs.  Thos.  M.  Young  &  Co.,  Albany,  Nov.  13, 1866. 

Syracuse. 
Gentlemen: — We  have  the  pleasure  to  acknowledge  the  receipt  of 
your  esteemed  favor  of  10th  inst.,  containing  your  Notes  dated 
Sept.    1,  at  3  mos.,  for  425.66, 
«      15,       «    '  "    425.66, 

Oct.      1,       «  «    425.67, 

Amounting  to  Twelve  Hundred  and  Seventy-Six  T9^  Dollars,  which 
we  have  placed  to  your  credit  in  settlement  of  your  account. 
Please   accept  our  thanks,  and,  requesting  the  favor  of  your 

future  orders,  we  remain, 

Very  truly,  yours, 

Chas.  L.  Riqua  &  Co. 


20.  Asking  for  Settlement. 

Mr.  Henry  G.  Sanders,  Worcester,  May  25, 1867. 

Concord. 
Dear  Sir : — We  respectfully  call  your  attention  to  our  statement 
of  account  rendered  April  3d,  a  settlement  of  which  at  your  earliest 
convenience  will  much  oblige 

Yours,  very  respectfully, 

Horace  Boyd  &  Co. 


MERCANTILE   LETTERS.  341 

21.  Enclosing  Draft  for  Acceptance. 

W.  B.  Perry,  Esq.,  Portland,  W.  18, 1868. 

Castine,  Me. 
Dear  Sir: — We  enclose  our  draft  on  you  for  acceptance,  "which 
please  let  us  have  by  return  mail,  and  oblige, 

Respectfully,  yours, 

James  Holland  &  Co. 


22.  Return  of  Accepted  Draft. 

Messrs.  James  Holland  &  Co.  Castine,  Dec.  25, 1867. 

Gentlemen: — Enclosed  please  find  your  draft,  dated  18th  inst.,  for 
$400,  with  acceptance. 

My  absence  from  the  city  has  caused  the  delay  in  replying  to 
your  favors.  Yours,  truly, 

W.  B.  Perry. 


23.  Requesting  Payment. 

Mr.  B.  S.  Vernon,  Rochester,  June  19, 18—. 

Syracuse. 
Dear  Sir: — If  convenient,  please  let  us  have  the  amount  of  your 
bill,  March  15th,  for  $187.50.     We  desire  to  close  all  our  accounts 
by  the  30th  inst.,  and  have  need  of  all  the  funds  due  us.     Please 
remit  without  delay,  and  much  oblige 

Yours,  respectfully, 

Lansing,  Mason  &  Co. 


24.  Another. 

Messrs.  Douglass  &  Heath.  Louisville,  Nov.  2, 18—. 

Dear  Sirs : — We  are  obliged  again  to  ask  you  for  the  balance  of 
your  account,  now  four  months  past  due.  We  are  much  incon- 
venienced by  your  delay,  and  have  waited  longer  than  we  think 
ought  to  be  expected.  The  account  must  be  speedily  settled,  and, 
if  we  do  not  hear  from  you  by  the  15th  inst.,  will  draw  on  you,  at 
five  days'  sight.  If  the  draft  is  not  protected  at  maturity,  we  shall 
be  compelled  to  adopt  some  other  mode  of  settlement. 

Very  truly,  yours, 

W.  Randolph  &  Co. 

29* 


342  MERCANTILE    LETTERS. 

25    Another. 

Mr.  H.  Y.  Henderson,  Wilmingtck,  April  6, 1867. 

Dover,  Del. 
Dear  Sir: 

Enclosed  please  find  our  usual  monthly  statement,  amount- 
ing to  $375. T2^,  for  which,  if  found  correct,  we  shall  be  pleased  to 
receive  remittance  by  30th  inst. 

Should  we  receive  no  remittance  by  that  time,  we  propose  to 
draw  on  you  at  sight  for  the  amount,  unless  in  the  mean  time  we 
are  otherwise  advised. 

Tours,  respectfully, 

James  S.  Smith  &  Co. 


26.  Advising  of  Draft. 

Mr.  H.  T.  Hawkins,  Cleveland,  June  3, 1867. 

Harvard.  III. 
Dear  Sir: 

As  we  are  in  want  of  funds,  we  take  the  liberty  of  draw- 
ing on  you  at  5  days'  sight  for  bills  of 

Jan.  10th,  $575.00 

Feb.  12th,  300.00 

$875.00 
Please  protect,  and  much  oblige 

Yours,  truly, 

Brown  &  WoRrmNaxoN. 


27.  Enclosing  Notes  for  Collection. 

Cashier  First  National  Bank,  Philadelphia,  July  29, 1866. 

Cincinnati. 

Dear  Sir : — Enclosed  find  for  collection, 

Note  J.  Smith,  due  Aug.  3/6,  810.20 

"    J.  Jones,     "       "     8/11,  600.00 

Acceptance  Morton  &  Co.,  due  Aug.  10/13,     920.62 

$2320.82 
If  paid,  please  remit  Draft  for  proceeds. 

Yours,  very  respectfully, 

George  V.  Maus. 


MERCANTILE    LETTERS.  342 

28.  Letter  of  Introduction. 

Worcester,  Mar.  2, 1867. 

Dear  Sir: — This  will  introduce  to  you  my  friend  Mr.  Samuel  S. 
Price,  of  this  city.  He  intends  staying  a  few  days  in  your  place, 
which  he  visits  on  business ;  and  I  take  the  liberty  of  recommend- 
ing him  to  your  kind  attention. 

He  is  a  gentleman  of  excellent  acquirements,  and  we  know  him 
to  be  responsible  to  the  extent  of  his  engagements.  Any  attention 
or  favor  that  you  may  render  him  shall  be  considered  a  personal 
favor,  which  I  shall  be  happy  to  reciprocate. 

To  Jarkd  L.  Morton,  Esq.  Very  sincerely,  yours, 

Chas.  M.  Hunter. 

29.  Letter  of  Recommendation. 

To  whom  it  may  concern : —  Buffalo,  Oct.  13, 1868. 

The  bearer  of  this,  Mr.  Edward  K.  Mitchell,  has  been  in  our  em- 
ploy for  three  years  past  as  salesman  and  book-keeper,  and  we  have 
ever  found  him  diligent  and  faithful  in  the  discharge  of  his  duties, 
and  one  who  endeavored  to  make  his  employers'  interest  his  own. 
He  is  correct  and  reliable  in  his  accounts,  and  is  well  qualified  to 
act  as  book-keeper  or  correspondent. 

We  cheerfully  recommend  him  to  any  who  may  require  the  ser- 
vices of  a  trustworthy  and  competent  person  in  their  counting-house. 

Very  respectfully, 

J.  W.  Cresson  &  Co. 

30.  Answer  to  an  Advertisement. 

315  Ouvk  Street,  8r.  Louis,  April  27, 18 — . 
Gentlemen: — In  answer  to  your  advertisement  in  the  "Democrat" 
of  to-day,  for  an  assistant  in  your  counting-house,  I  respectfully 
offer  ray  services  to  your  firm.  I  am  without  experience  in  busi- 
ness, but  have  a  desire  to  enter  mercantile  life,  am  willing  to  work, 
and  have  just  graduated  from  our  city  High  School. 

If  you  will  give  me  a  trial,  I  will  devote  myself  to  your  interests 
and  endeavor  to  acquit  myself  to  your  entire  satisfaction.     For  re- 
ference as  to  my  character  or  ability,  I  would  offer  the  names  of 
Mr.  George  H.  Bo  wen,  116  Washington  Avenue, 
Messrs.  J.  F.  Dwight  &  Co.,  20  South  Main  Street. 
Should  a  personal  interview  be  desired,  please  address  as  above. 

Very  respectfully, 

Herman  L.  Foster 


344  MERCANTILE    LETTERS. 

31.  Application  for  a  Situation  as  Book- keeper. 

Messrs.  K.  K.  Langton  &  Co.,  Columbus,  0.,  Feb.  19, 1868. 

Cincinnati,  0. 
Gentlemen: — Having  learned  from  Mr.  Charles  K.  Minturn  that 
you  desire  the  services  of  a  book-keeper,  I  respectfully  offer  myself 
as  an  applicant  for  the  situation.  I  have  been  engaged  for  two 
years  in  the  wholesale  house  of  L.  R.  Bullock  &  Co.  as  clerk  and 
assistant  book-keeper,  and  have  a  good  knowledge  of  accounts.  My 
business  acquaintance  is  extensive  in  the  western  part  of  this  State 
and  the  northern  part  of  Kentucky,  and  I  could  therefore  influence 
considerable  trade. 

I  enclose  copy  of  testimonial  from  my  late  employers,  and  would 
also  respectfully  refer  you,  as  to  my  character  and  ability,  to 

Messrs.  Albert  L.  Hancock  &  Sons,  Wholesale  Grocers,  Cincinnati, 
"        Stringer,  Burt  &  Co.,  Iron  Merchants,  " 

F.  L.  Williams,  Esq.,  City  Solicitor,  " 

Any  communication  which  you  may  be  pleased  to  make,  addressed 
as  above,  will  receive  prompt  attention. 

Very  respectfully,  yours, 

Frederick  K.  Johnson. 


32.  Recommendation  enclosed  in  the  above. 

(Copy.) 

Columbus,  June  1, 1867. 
The  bearer,  Frederick  K.  Johnson,  has  been  in  our  employ  as 
assistant  book-keeper  for  over  two  years,  and  we  have  always  found 
him  to  be  honest,  steady,  and  correct  in  his  habits  and  deportment, 
and  well  qualified  for  any  position  of  trust  in  a  counting-house. 
We  cheerfully  recommend  him  as  a  competent  book-keeper,  and  one 
who  will  earnestly  apply  himself  to  promote  the  interests  of  his 
employers.  Respectfully, 

L.  R.  Bullock  &  Co. 

33.  Order  for  a  Book. 

Madison,  Feb.  26, 1868. 
Messrs.  Eldredoe  &  Bro.,  Philadelphia. 

Enclosed  find  One  Dollar  and  Fifty  Cents  ($1.50),  for  which  please 
send  me  one  copy  of  the  "Crittenden  Commercial  Arithmetic  and 
Business  Manual,"  and  oblige  Yours,  truly, 

Henry  M.  Curtis. 


INSTALMENT    RECEIPT. 
INSTALMENT    RECEIPT. 


345 


$2§®®0  2©(D  Pharos, 

WASHINGTON  R.  R.  COMPANY. 

Received,  Washington,  jlpr.  11th,  1867,  of  8.  J.  Andrews, 
Q!wo  thousand  Five  Hundred  (Dollars,  being  Twenty-Five 
Dollars  per  share,  and  the  Qlhird  Instalment  on  Gauo  Hun- 
dred Shares  of  the  Capital  Stock  of  the  WASHINGTON  RAILROAD 
COMPANY  J  for  which  said  shares  a  full  Certificate  will  be  given 
upon  payment  of  all  instalments  due  thereon,  and  the  surrender  of 
this  Certificate. 


Secretary. 


^President. 


Copy  of  an  Exchequer  Bill  issued  in  the  reign  of  Queen  Anne. 
£l2  i Of.  EXCHEQUER. 


A  28/24.  Purfuant  to  an  Act  of  Parliament,  Anno  1709,  for  enlarging 
the  Capital  Stock  of  the  Bank  of  England,  &c.  This  Bill  entitles  the 
bearer  to  twelve  pounds,  ten  fhillings,  with  intereft  at  a  farthing  a  day. 
To  be  received  in  all  aids,  taxes,  loans,  and  payments  whatfoever  to  Her 
Majefty,  and  to  be  paid  to  the  bearer  by  the  Governor  and  Company  of  the 
Bank  of  England,  from  time  to  time,  as  the  fame  shall  be  paid  into  the 
exchequer  by  any  receivers  or  collectors  of  Her  Majefty's  revenue,  aids, 
taxes  or  fupplies ;  and  be  thence  reiffued  and  at  all  times  by  fuch  receivers 
or  collectors  out  of  any  public  money  in  any  of  their  hands,  as  directed  by 
the  faid  Act. 

BANK   DEPOSIT    TICKET. 

Deposited,      April  8th,  1867,      at  the 
MECHANICS'  NATIONAL   BANK. 


Dollars. 

Ct8. 

675 
25 
50 

325 

465 

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$1541 

26 

346 


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347 


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348 


U.  S.  "FIVE-TWENTY7    COUPON    BOND. 


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Your  attention  is  respectfully  invited  to  the  following  list  of  our 
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CHASE  AND  STUART'S  CLASSICAL  SERIES. 

EDITED  BY 

THOMAS  CHASE,  A.M.,   GEOEGE  STUAET,  A.M., 

PROFESSOR   OP   CLASSICAL  LITERATDRE,  PROFESSOR  OF  THE  LATIN  LANGUAGE, 

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REFERENCES  TO 

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ANDREWS  &  STODDARD'S  LATIN  GRAMMAR, 

BULLIONS  &  MORRIS'S  LATIN  GRAMMAR, 

GILDERSLEEVE'S  LATIN  GRAMMAR, 

ALLEN'S  MANUAL  LATIN  GRAMMAR, 

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and  yet  would  require  him  to  make  faithful  use  of  his  Grammar 
and  Dictionary. 

It  is  believed  that  this  classical  Series  needs  only  to  be  known  to 
insure  its  very  general  use.     The  publishers  claim  for  it  peculiar 

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Is   the   original    work   of    American 

scholars. 


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are  explained  in  accordance  with  the 
views  of  the  best  German  scholars. 


The  Publishers  desire  to  acknowledge  their  indebtedness  to  the 
teachers  of  Latin  throughout  the  country  who  are  using  these  books, 
for  the  high  position  that  has  been  accorded  to  them.  Grateful  for 
the  very  flattering  welcome  they  have  received,  we  pledge  ourselves 
that  the  entire  Series  shall  be 

In  Scholarship  Inferior  to  None. 

In  Appearance  The  Most  Attractive. 

In  Binding  The  Most  Durable. 

In  Price  The  Most  Reasonable. 

The  Series  contains  the  following  works,  viz. : 

fiESAR'S   COMMENTARIES   on  the  Gallic  War. 

^  With  Explanatory  Notes,  Lexicon,  Geographical 
Index,  Map  of  Gaul,  Plan  of  the  Bridge,  &c.  By- 
Prof.  George  Stuart.  Price  by  mail,  postpaid, 
#1.25. 

FIRST  SIX  BOOKS  OF  VIRGIL'S  jENEID,  with 

*■  Explanatory  Notes,  Lexicon,  Remarks  on  Classical 
Versification,  Index  of  Proper  Names,  &c.  By  Prof. 
Thomas  Chase.     Price  by  mail,  postpaid,  #1.25. 

IL'S  jCNEID.  With  Explanatory  Notes,  Met- 
rical Index,  Remarks  on  Classical  Versification, 
Index  of  Proper  Names,  &c.  By  Prof.  Thomas 
Chase.     Price  by  mail,  postpaid,  $1.50. 


Yirg 


VIRGIL'S  ECLOGUES,  GEORGICS,  AND  MORE- 

TUM.  With  Explanatory  Notes,  Lexicon,  &c.  By 
Prof.  George  Stuart.     Price  by  mail,  postpaid, 

#1.25. 

f  ICERO'S  SELECT  ORATIONS.    With  Explanatory 

**     Notes,  Lexicon,   Life  of  Cicero,    List  of  Consuls 

during   his   Life,   Plan  of  the  Roman  Forum  and 

its  Surroundings,  &c.     By  Prof.  George  Stuart. 

Price  by  mail,  postpaid,  $1.50. 

CALLUST'S    CATILINE    AND    JUGURTHINE 

WAR.  With  Explanatory  Notes,  Lexicon,  &c. 
By  Prof.  George  Stuart.  Price  by  mail,  post- 
paid, I1.25. 

rORNELIUS     NEPOS.       With   Explanatory    Notes, 
^     Lexicon,  &c.     By  Prof.  George  Stuart.     Price 
by  mail,  postpaid,  $1.25. 

UORACE'S  ODES,  SATIRES,  AND  EPISTLES. 

"  With  Explanatory  Notes,  Metrical  Key,  Index  of 
Proper  Names,  &c.  By  Prof.  Thomas  Chase. 
Price  by  mail,  postpaid,  $1.50. 

¥  IVY.     BOOKS  I.,  XXI.  AND  XXII.    With  extracts 

^     from  Books  ix. ,  xxiv. ,  xxxv. ,  xxxviii.  ,  xxxix. ,  and 

xlv.    With  Explanatory  Notes,  Geographical  Index, 

&c.     By  Prof.  Thomas   Chase.     Price   by   mail, 

postpaid,  $1.50. 

flCERO  DE   SENECTUTE   ET   DE   AMICITIA. 

V  With  Explanatory  Notes,  &c.  By  E.  P.  Crowell, 
A.M.,  Professor  of  Latin,  and  H.  B.  Richardson, 
Instructor  of  Latin  in  Amherst  College.  Price  by 
mail,  postpaid,  $1.25. 
flCERO  DE  OFFICIIS.  With  Explanatory  Notes, 
^  &c.  By  E.  P.  Crowell,  A.M.,  Professor  of  Latin 
in  Amherst  College.    Price  by  mail,  postpaid,  $1.50. 


flCERO'S  TUSCULAN   DISPUTATIONS.    Book 

^  First.  The  Dream  of  Scipio,  and  Extracts  from  the 
Dialogues  on  Old  Age  and  Friendship.  With  Ex- 
planatory Notes.  By  Prof.  Thomas  Chase.  Price 
by  mail,  postpaid,  #1.25. 

TERENCE'S  ANDRIA  AND  ADELPHOE.    With 

*  Explanatory  Notes,  by  E.  P.  Crowell,  A.M.,  Pro- 
fessor of  Latin  in  Amherst  College.  Price  by  mail, 
postpaid,  #1.25. 

IN  PREPARATION. 

Tacitus. 
Juvenaj,. 

The  last  two  volumes  are  now  in  preparation.  It  is  intended 
that  they  shall,  in  every  respect,  equal  the  volumes  of  the  Series 
already  issued. 

A 
SERIES  OF  TEXT-BOOKS 

ON   THE 

ENGLISH   LANGUAGE. 

By  John  S.  Hart,  LL.D.,  Professor  of  Rhetoric  and  of 
the  English  Language  in  the  College  of  New  Jersey. 
The  Series  comprises  the  following  volumes,  viz. : 

Language  Lessons  for  Beginners,  .        .        .  Price  $0.30 

English  Grammar  and  Analysis,  ...  "  0.90 

First  Lessons  in  Composition,  ...  "  0.90 

Composition  and  Rhetoric,  ...  "  1.50 

A  Short  Course  in  Literature,  ...  "  1.50 

And  for  Colleges  and  Higher  Institutions  of  Learning : 

A  Manual  of  American  Literature,  .        .  "  2.50 

A  Manual  of  English  Literature,  .        •  "  2.50 


Hart's  Language  Lessons  for  Beginners.  A  simple,  practical  and 
rational  introduction  to  the  study  of  Grammar. 

Hart's  English  Grammar  and  Analysis  is  a  book  that  will  be 
hailed  with  delight  by  teachers  who  want  an  English  Grammar  that 
can  be  used  with  satisfaction  both  by  teacher  and  pupil. 

Hart's  First  Lessons  in  Composition  is  intended  for  beginners. 
A  greater  help  to  the  Teacher  never  was  invented.  It  will  revo- 
lutionize the  whole  work  of  teaching.  By  the  increased  power  of 
expression  which  it  gives  to  the  pupil,  it  doubles  his  progress  in 
every  study.  There  is  not  a  school  but  in  which  a  class  can  be 
formed  for  its  advantageous  use.  Any  pupil  able  to  read  tolerably 
well  can  use  it  to  advantage. 

Hart's  Composition  and  Rhetoric  has  been  prepared  with  a  full 
knowledge  of  the  wants  of  both  teacher  and  scholar  in  this  impor- 
tant branch  of  education,  and  the  author  has  spared  no  pains  to 
make  the  book  eminently  practical  and  adapted  to  use  in  the  class- 
room. Dr.  Hart  has  been  engaged  for  more  than  one-third  of  a 
century  in  the  practical  duties  of  the  school-room,  and  for  years 
past  has  made  a  specialty  of  the  subject  of  which  the  present  volume 
treats.  The  great  variety  and  copiousness  of  the  "  Examples  for 
Practice"  will  commend  the  book  to  general  favor.  In  this  respect 
it  is  unequalled  by  any  similar  work  heretofore  published. 

Hart's  Short  Course  in  Literature,  English  and  American,  is 
intended  as  a  text-book  for  Schools  and  Academies.  It  is  designed 
for  the  use  of  those  who  have  not  the  time  to  devote  to  the  study 
of  Literature  as  laid  down  in  the  larger  books  of  the  Series. 

Hart's  Manual  of  English  Literature  is  intended  as  a  text  book 
for  Colleges,  and  as  a  book  of  reference. 

Hart's  Manual  of  American  Literature  is  a  companion  volume 
to  the  "  English  Literature,"  wh;h  which  it  corresponds  in  general 
character  and  design.  It  is  intended  as  a  text-book  for  Colleges, 
and  as  a  book  of  reference. 

In  these  volumes  Prof.  Hart  has  embodied  the  matured  fruits  of 
his  life-long  studies  in  this  department  of  letters.  We  believe  they 
will  be  found  in  advance  of  any  other  text-books  on  the  subject,  in 
the  comprehensiveness  of  the  plan,  the  freshness  of  much  of  the 
materials,  the  sound  judgment  shown  in  the  critical  opinions,  the 
clearness  with  which  the  several  topics  are  presented,  and  the  beauty 
as  well  as  the  practical  convenience  of  the  mechanical  arrangements. 


1 


ANATOMY,  PHYSIOLOGY,  AND  HYGIENE.  A 

**    Text-Book  for  Schools,  Academies,  Colleges,  and 
Families.     By  Joseph  C.  Martindale,  M.D.,  late 
Principal  of  the  Madison  Grammar  School,  Phila- 
delphia.    Price  by  mail,  postpaid,  £1.36. 
The  study  of  Physiology  and  the  Laws  of  Health  is  as  important 
as  it  is  interesting.     Its  importance  has  become  so  generally  recog- 
nized that  there  are  now  few  schools  in  which  it  does  not  occupy  a 
prominent  position  in  the  course  of  instruction.     Dr.  Martindale's 
Anatomy,  Physiology,  and  Hygiene  presents  the  following  claims 
to  the  consideration  of  teachers.     Technicalities  have  been  avoided, 
so  far  as  consistent  with  the  treatment  of  the  subject.     The  style  in 
which  it  is  written  is  not  only  pleasing,  but  such  as  to  be  readily 
comprehended  by  those  for  whose  use  it  is  designed.     Superfluous 
matter  has  been  omitted,  so  that  the  book  can  be  completed  in  a 
much  shorter  period  than  any  other  text-book  on  the  subject  as  yet 
published. 

Descriptive  circular  sent  on  application. 


FIRST  LESSONS  IN  NATURAL  PHILOSOPHY. 

*  For  Beginners.  By  Joseph  C.  Martindale,  M.D., 
late  Principal  of  the  Madison  Grammar  School. 
Price  by  mail,  postpaid,  60  cents. 

This  book  is  what  its  title  indicates,  "  First  Lessons  in  Natural 
Philosophy;"  and  it  presents  each  division  of  the  subject  in  such 
an  easy  and  familiar  style,  that  it  cannot  fail  to  interest  and  instruct 
any  child  of  ordinary  intelligence..  Beginning  as  it  does  in  a  simple 
and  easy  manner,  it  secures  the  interest  of  the  pupil  by  first  directing 
his  attention  to  objects  in  nature  with  which  he  is  familiar.  When 
the  interest  is  thus  excited,  the  subject  is  gradually  unfolded  by 
presenting,  one  after  another,  the  familiar  things  met  with  in  the 
every-day  walks  of  life ;  thus,  the  most  common  objects  are  made 
the  means  of  teaching  great  philosophical  truths.  Only  so  much 
of  the  subject  is  presented  as  can  be  taught  with  profit  in  our  public 
and  private  schools,  yet  what  has  been  given  will  be  found  to  em- 
brace all  the  more  common  phenomena  met  with  in  every-day  life. 
The  facts  are  so  clearly  and  so  plainly  set  forth,  that  they  are  en- 


tirely  capable  of  comprehension  by  those  for  whose  use  and  benefit 
this  little  work  is  designed. 

Teachers  interested  in  the  "  Object  Lesson  "  system  of  teaching 
will  find  this  little  book  a  valuable  aid,  in  furnishing  subjects  for 
discussion. 

Circular  containing  specimen  pages,  &c,  sent  to  any  address  on 
application. 

AN  ELEMENTARY  ALGEBRA,  FOR  SCHOOLS 

**  AND  ACADEMIES.  By  Joseph  W.  Wilson, 
A.M.,  Professor  of  Mathematics  in  the  Philadel- 
phia Central  High  School.  Price  by  mail,  post- 
paid, $1.25. 

The  present  work  is  the  result  of  an  effort  to  produce  an  Ele- 
mentary Algebra  suited  to  the  wants  of  classes  commencing  the 
study.  It  has  been  prepared  by  one  who  for  years  has  felt  the  need 
of  just  such  a  book,  and  is  the  fruit  of  long  experience  in  the 
school -room. 

With  this  book  in  hand,  the  pupil  cannot  help  avoiding  the  diffi- 
culties which  invariably  present  themselves  at  the  very  threshold 
of  the  study  of  Algebra. 

It  has  been  the  aim  to  give  such  a  presentation  of  the  subject  as 
will  meet  the  wants  of  Common  Schools  and  Academies.  It  is  an 
elementary  work,  and  no  attempt  has  been  made  to  include  every- 
thing which  might  be  brought  under  the  head  of  Algebra.  The 
treatment  of  the  subject  is  on  the  principle  of  "  step  by  step,"  so 
that  the  pupil  at  the  very  outset  is  inspired  with  a  degree  of  confi- 
dence which  induces  self-reliance;  rendering  unnecessary  a  con- 
stant application  to  the  teacher  for  help. 

The  book  is  commended  to  teachers  in  the  hope  that  it  will  satisfy 
a  need  which  the  author  has  himself  frequently  felt. 

Descriptive  circular  sent  on  application. 

j\  KEY  TO  WILSON'S  ELEMENTARY  ALGE- 

BRA,  fOT  tne  use  of  Teachers  only.  By  Prof. 
Joseph  W.  Wilson,  A.  M.  Price  by  mail,  post- 
paid, #1.25. 


IO 

THE    CRITTENDEN    COMMERCIAL    ARITH- 
1    METIC  AND  BUSINESS  MANUAL.    Designed 

for  the  Use  of  Teachers,  Business  Men,  Academies, 
High  Schools,  and  Commercial  Colleges.    By  John 
Groesbeck,  Consulting  Accountant,  and  Principal 
of  Crittenden's  Philadelphia  Commercial  College. 
Price  by  mail,  post-paid,  $1.50. 
In  every  High  School  and  Academy  in  the  land,  the  organization 
of  a  class  in  Commercial  Arithmetic,  Business    Calculations    and 
Forms,  will  prove  an  element  of  popularity  and  success  that  will 
yield  rich  results.     The  subject  itself  is  so  intrinsically  valuable  as 
a  means  of  developing  thought,  that,  were  this  the  only  result  to  be 
gained,  it  would  be  entitled  to  and  should  receive  the  special  atten- 
tion of  the  progressive  teacher.     Eut  apart  from  this,  the  introduc- 
tion of  a  study  so  interesting  in  itself,  so  attractive  to  the  scholar, 
and  having  so  direct  a  bearing  on  his  future  welfare,  will,  in  many 
an  instance,  decide  the  welfare  of  a  school,  directing  the  channel 
of  popular  opinion  in  its  favor,  and  prove  the  means  of  filling  it 
with  students  anxious  to  secure  its  advantages. 

Circulars  containing  full  descriptive  notice,  testimonials,  &c,  will 
be  sent  to  any  address  on  application. 


A    MANUAL  OF  ELOCUTION.     Founded  upon  the 

"    Philosophy  of  the  Human  Voice,  with    Classified 

Illustrations,  Suggested  by  and  Arranged  to  meet 

the  Practical  Difficulties  of  Instruction.     By  M.  S. 

Mitchell.     Price  by  mail,  post-paid,  #1.50. 

SUBJECTS    TREATED    OF. 

Articulation,  Pronunciation,  Accent,  Emphasis,  Modulation, 
Melody  of  Speech^  Pitch,  Tone,  Inflections,  Sense,  Cadence,  Force, 
Stress,  Grammatical  and  Rhetorical  Pauses,  Movement,  Reading 
of  Poetry,  Action,  Attitude,  Analysis  of  the  Principles  of  Gestures, 
and  Oratory. 

The  compiler  cannot  conceal  the  hope  that  this  glimpse  of  our 
general  literature  may  tempt  to  individual  research  among  its  treas- 
ures, so  varied  and  inexhaustible :  —  that    this    text-book   for   the 


II 

school- room  may  become  not  only  teacher,  but  friend,  to  those  in 
whose  hands  it  is  placed,  and  while  aiding,  through  systematic  de- 
velopment and  training  of  the  elocutionary  powers  of  the  pupil,  to 
overcome  many  of  the  practical  difficulties  of  instruction,  may 
accomplish  a  higher  work  in  the  cultivation  and  refinement  of 
character. 

THE  MODEL  SPEAKER:  Consisting  of  Exercises 
A  in  Prose,  Poetry,  and  Blank  Verse,  Suitable  for 
Declamation,  Public  Readings,  School  Exhibitions, 
&c.  Compiled  for  the  Use  of  Schools,  Academies, 
Colleges,  and  Private  Classes,  by  Prof.  Philip 
Lawrence.     Price  by  mail,  post-paid,  #1.50. 

The  book  is  printed  on  superfine,  tinted  paper,  and  handsomely 
and  durably  bound  in  fine  English  cloth,  with  bevelled  sides.  For 
variety  and  freshness  of  selections,  beauty  of  mechanical  execution, 
and  economy  in  price,  it  is  unequalled  by  any  similar  work  extant. 

Great  care  has  been  taken  to  consult  the  authorized  editions  of 
the  various  writers  represented,  that  the  extracts  from  their  works 
may  be  relied  upon  as  accurate ;  though,  in  some  instances,  pre- 
ference has  been  given  to  an  early  edition,  when,  in  later  issues, 
the  alterations  have  not  been  deemed  improvements.  Many  poems 
have  been  introduced  which  have  never  before  found  their  way  into 
any  book  of  selections,  being  now  for  the  first  time  published  in 
this  country  in  a  permanent  form. 

It  is  believed  that  this  book  will  be  found  admirably  adapted  for 
use  as  a  "Reader,"  either  in  connection  with  any  of  the  regular 
series  of  reading  books,  or  to  be  taken  up  by  classes  that,  having 
used  the  higher  readers  of  the  different  series,  need  variety  as  an 
incentive  to  interest.  For  this  purpose  we  particularly  commend 
it  to  the  attention  of  Principals  of  Academies,  Seminaries,  High 
Schools,  Normal  Schools,  and  Institutions  for  Young  Ladies. 

Descriptive  Circular,  containing  entire  List  of  Contents,  sent  to 
any  address  on  application. 


JHE 


MODEL  DEFINER.  An  Elementary  Book  for 
Beginners,  containing  Definitions,  Etymology,  and 
Sentences  as  Models,  exhibiting  the  correct  use  of 
Words.  By  A.  C.  Webb.  Price  by  mail,  post- 
paid, 25  cents. 


THE  MODEL  ETYMOLOGY.    Giving  not  only  the 
*-      Definitions,  Etymology,  and  Analysis,  but  also  that 
which  can  be  obtained  only  from  an  intimate  ac- 
quaintance with  the  best  authors,  viz. :  the  correct 
use  of  Words.     With  a  Key  containing  the  analysis 
of  every  word  which  could  present  any  difficulties 
to  the  learner.     By  A.  C.  Webb.     Price  by  mail, 
post-paid,  60  cents. 
The  plan  adopted  in  the  Model  Definer  and  Model  Etymology  is 
not  new.     All  good  Dictionaries  illustrate  the  meaning  by  a  Model. 
To  quote  from  a  good  author,  a  sentence  containing  the  word,  as 
proof  of  its  correct  use,  is  the  only  authority  allowed.     A  simple 
trial  of  the  work,  either  by  requiring  the  child  to  form  sentences 
similar  to  those  given,  or  by  memorizing  the  sentences  as  models 
for  future  use,  will  convince  any  one  of  the  following  advantages  to 
be  derived  from  the  Model  Word-Book  Series. 

1.  Saving  of  time. 

2.  Increased  knowledge  of  words. 

3.  Ease  to  teacher  and  scholar. 

4.  A  knowledge  of  the  correct  use  of  words. 

Descriptive  Circular  sent  on  application. 

M  ARTINDALE'S   HISTORY  OF  THE  UNITED 

STATES.  From  the  Discovery  of  America  to  the 
present  time.  By  Joseph  C.  Martindale,  M.  D. , 
Principal  of  the  Madison  Grammar  School,  Phila- 
delphia.    Price  by  mail,  postpaid,  60  cents. 


13 

With  this  book  in  his  hand,  the  scholar  can  in  a  single  school- 
term  obtain  as  complete  a  knowledge  of  the  History  of  the  United 
States  as  has  heretofore  required  double  the  time  and  effort. 

Descriptive  circular  sent  on  application. 

THE  YOUNG   STUDENT'S   COMPANION;    or, 

Elementary  Lessons  and  Exercises  in  Translating 
from  English  into  French.  By  M.  A.  Longstreth, 
Principal  of  a  Seminary  for  Young  Ladies,  Phila- 
delphia.    Price  by  mail,  postpaid,  $1.00. 

TABLES  OF  LATIN  SUFFIXES.  Designed  as  an 
Aid  to  the  Study  of  the  Latin  Grammar.  By  Amos 
N.  Currier,  A.M.,  Professor  of  Latin  in  the  Uni- 
versity of  Iowa.    Price  by  mail,  postpaid,  50  cents. 

A    FRENCH  VERB  BOOK  ;  or,  the  New  Expositor 
"■    of  Verbs  in  French.     By  Ernest  Lagarde,  A.M., 
Professor  of  Modern  Languages  in  Mount  St.  Mary's 
College.     Price  by  mail,  postpaid,  $1.00. 
Lagarde's  French  Verb  Book  embraces  a  comprehensive  analysis 
of  the  conjugations,  a  new  method  for  the  formation  and  use  of  the 
tenses,  and  a  complete  paradigm  of  all  the  verbs,  the  whole  ex- 
plained and  exemplified  by  full  illustrations.     It  is  believed  that 
the  book  will  be  found  a  valuable  aid  to  the  study  of  the  French 
language. 

COMPENDIUM  OF  FRENCH  RULES.    A  Com- 

**  pendium  of  the  Grammatical  Rules  of  the  French 
Language.  By  F.  A.  Bregy,  A.M.,  Professor  of 
French  in  the  University  of  Pennsylvania. 

IN  THREE  PAHTS. 

PART  FIRST.     Price  by  mail,  postpaid,  75  cents. 
PART  SECOND.  "  "  50      " 

PART  THIRD.     In  Preparation. 

; 


14 

These  hand-books  can  be  advantageously  used  in  connection  with 
any  system.  They  lead  the  student  from  the  first  elements  of  the 
language  to  and  through  the  principal  rules  of  the  French  Syntax, 
enabling  him,  in  a  short  time,  to  master  intelligently  what  otherwise 
would  prove  a  tedious  and  difficult  task. 

THREE  THOUSAND  PRACTICE  WORDS.    By 

*      Prof.  J.  Willis  Westlake,  A.M.,  Prof,  of  English 
Literature  in  the  State  Normal  School,  Millersville, 
Pa.     Price  by  mail,  postpaid,  50  cents. 
This  book  contains  Lists  of  Familiar  Words  often  Mis-spelled, 
Difficult  Words,  Homophonous  Words,  Words  often  Confounded, 
Rules   for  Spelling,  &c.     It    is  a  book  that  every  teacher  wants. 
Handsomely  bound  in  flexible  cloth,  crimson  edges. 
Descriptive  circular  sent  on  application. 

THE  CONSTITUTION  OF  THE  UNITED  STATES. 

1      By  Prof.   John  S.  Hart,  LL.D.     Price  by  mail, 
postpaid,  60  cents. 
Just  the  book  to  place  in  the  hands  of  every  future  voter.     Should 
be  taught  in  every  school. 

CELECTIONS  FOR  LITTLE  FOLKS.    A  Book  of 

*"     Poetical  Selections  for  Children.     Price  by  mail, 
postpaid,  50  cents. 

That  sympathy  which  loves  to  link  the  present  with  the  past,  has 
prompted  the  preparation  of  this  volume.  Simply  to  make  a  child 
glad,  is  a  worthy  motive  for  storing  its  mind  with  poetic  utterances, 
especially  when  the  remembrance  of  such  happiness  becomes  a 
well-spring  of  delight  for  a  lifetime. 

This  little  book  is  intended  for  children  not  more  than  nine  or 
ten  years  of  age,  and  the  compiler  would  feel  it  a  good  excuse  for 
adding  another  book  to  those  already  extant,  should  the  little  ones 
find  pleasure  in  it. 


i5 

IN   THE   SCHOOL-ROOM;    or,   Chapters   in  the 

Philosophy  of   Education.     By   John  S.  Hart, 

LL.D.,  late  Principal  of  New  Jersey  State  Normal 

School.     Price  by  mail,  postpaid,  $1.25. 

This  work  gives  the  results  of  the  experience  and  observation 

of  the  author  "in  the  School-room  "  for  a  period  of  years  extending 

over  more  than  one-third  of  a  century. 


JHE 


THE 


MODEL  POCKET  REGISTER  AND  GRADE- 
BOOK.  A  Roll-Book,  Record,  and  Grade-Book 
combined.  Adapted  to  all  grades  of  classes,  whether 
in  College,  Academy,  Seminary,  High  or  Primary 
School.  Handsomely  bound  in  fine  English  cloth, 
bevelled  sides,  crimson  edges.  Price  by  mail,  post- 
paid, 65  cents. 

MODEL  SCHOOL  DIARY.  Designed  as  an 
aid  in  securing  the  co-operation  of  parents.  It  con- 
sists of  a  Record  of  the  Attendance,  Deportment, 
Recitations,  &c,  of  the  Scholar,  for  every  day  in 
the  week.  At  the  close  of  the  week  it  is  to  be  sent 
to  the  parent  or  guardian  for  his  examination  and 
signature.  Copies  will  be  mailed  to  teachers  for 
examination,  post-paid,  on  receipt  of  ten  cents. 
Price  per  dozen,  by  mail,  post-paid,  #1.05. 

HE  MODEL  MONTHLY  REPORT.  The  general 
character  of  the  Monthly  Report  is  the  same  as  that 
of  the  Model  School  Diary,  excepting  that  it  is  in- 
tended for  a  Monthly  instead  of  a  Weekly  Report  of 
the  Attendance,  Recitations,  &c,  of  the  Pupil. 
Copies  will  be  mailed  to  teachers  for  examination, 
postpaid,  on  receipt  of  ten  cents.  Price  per  dozen, 
by  mail,  postpaid,  #1.05. 


BOOK"  KEEPING  BLANKS.  Consisting  of  six 
**  blank  books,  as  follows :  Day  Book,  Cash  Book, 
Ledger,  Journal,  Bill  Book,  and  Book  for  Miscel- 
laneous Exercises.  Price  for  each  book  by  mail, 
postpaid,  15  cents;  or  the  entire  set  of  six  books  by 
mail,  postpaid,  90  cents. 

These  books  have  been  prepared  as  a  matter  of  practical  con- 
venience for  students  in  Book-keeping.  They  can  be  used  with  any 
treatise,  and  will  be  sold  singly  or  in  sets,  as  may  be  desired. 

Teachers  corresponding  with  us  are  requested  to  supply  us  with 
a  copy  of  the  circular  or  catalogue  of  the  school  of  which  they  are 
the  Principal,  or  with  which  they  are  connected. 

Descriptive  circulars  of  all  our  publications  will  be  sent  to  any 
address  on  application. 

Please  address, 

Eldredge  &  Brother, 

No.  17  North.  Seventh  Street, 

PHILADELPHIA. 


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